w4 Claiming 11

[Bjorn]

I thought there was an old rule not to claim more than 10 exemptions or the boss would turn it over to the IRS for review. I have a customer who should claim 11 to get his withholding correct.

Is there a problem and will he get a letter from the IRS by going so high on his w4?

Mahalo
Bjorn

[jainen]

he gets a letter

>>I have a customer who should claim 11 <<

So what if he gets a letter? He can easily explain what he's doing, right?

[taxmandan]

No problem right

now. The IRS does not require the employer to send the W-4 to them unless they ask for it. As I understand it, theIRS can tell the employer to ignore the W-4 and require withholding at a different level if theIRS tells them to do so but I've never seen that happen.

[Luis Mopeo]

The rule changed recently.

TheTaxBook, 2005, page 23-4.

"New rules effective April 14, 2005. The IRS no longer requires employers to submit W-4s to the IRS when the employee claims more than 10 allowances."

IR-2005-45

[Davc]

State rules may vary.