The Withholding Compliance Program analyzes wages and tax information on past W-2s to determine if individual taxpayers have had their taxes correctly withheld. When it is suspected an employee’s wages are being under withheld, the IRS will issue ‘lock-in’ letters in accordance with the Withholding Compliance Program.

Why would I get a lock-in letter?

The IRS sends you Letter 2800C, WHC Lock-in Letter to Employer, when an employee didn’t have enough federal income withheld. The lock-in letter tells you to withhold at a specific rate from an employee’s wages. You’ll also receive the employee copy of the letter.

Is there a change in the IRS Withholding requirement?

A9: There is no change in the requirement that employees have adequate income tax withholding. The IRS Tax Withholding Estimator is available to help employees determine the proper amount of federal income tax withholding.

When does an employer have to withhold from an employee?

Until the employee furnishes a new Form W-4, the employer must withhold from the employee as from a single person with no adjustments to withholding; if, however, a prior Form W-4 is in effect for the employee, the employer must continue to withhold based on the prior Form W-4.

When to call the IRS about a different withholding rate?

Please call us at the number shown below within 30 days from the date of the letter. We will consider your explanation of why you believe you are entitled to a different withholding rate or number of withholding allowances (or exempt status).

What happens if an employer receives an invalid Form W-4?

If an employer receives an invalid Form W-4, the employee will be treated as failing to furnish a Form W-4; the employer must inform the employee that the Form W-4 is invalid and must request another Form W-4 from the employee. Until the employee furnishes a new Form W-4, the employer must withhold from the employee as from a single person.