NoSSN - Annual W-4 Reminder

Annual W-4 Reminder
January 13, 2004

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Received this from Preferred Services. It's too good not to post. Hope they don't mind. There's a link at the bottom.

Every January, thousands of entities across America send

or post notices advising their workers to submit W-4

forms for the new year when: 1) there's been a change in

your "withholding status" (marriage, divorce, number of

dependents claimed); 2) when you are claiming "exempt"

status.

The filing of a withholding certificate is purely

voluntary [31 CFR 31.3402(p)-1(b)]. We have found no

statute or regulation mandating a duty to file a form

W-4, W-9 or their equivalents. In fact, the Code of

Federal Regulations clearly state the entity OR the

worker may terminate the withholding agreement at any

time, by furnishing a signed, written notice to the

other. [See 26 CFR 31.3402(p)-1(b)(2)]

The court ruled that an entity is not required to send a

W-4 form or other employment forms to the IRS, unless the

entity is served with an order from a court of competent

jurisdiction. [See U.S. v. Mobil Oil Co., 82-1 USTC para.

9242, U.S.D.C. ND Tex. Dallas 1981 CA. 3-80-0438-G]

Anyone who submits an 'exempt' Form W-4 is asking for

trouble. According to a "Payroll Alert" article we

received, the IRS is hell bent on ignoring their own

codes and procedures whereby they state one may file an

exempt Form W-4 when you meet the IRS requirements to do

so, while penalizing workers who follow the IRS

instructions.

According to the article, in 2000, a whopping 69% of

federal income taxes were collected through payroll

withholding. (The IRS does not care that the amounts

were unlawfully taken from the worker's paycheck without

the worker's explicit, voluntary, written consent.)

The "Questionable W-4 Program" is yet another scheme

perpetrated on the American workers who claim 10 or more

withholding allowances, or claim an exemption from income

tax withholding. Entities are instructed by the IRS, to

send these specific W-4's to the IRS each quarter along

with the entity's Form 941 payroll report. The IRS

invites the entity to send the W-4's more frequently if

it so chooses.

What does the IRS expect to gain from this? It's very

obvious: more contacts with entities regarding

questionable W-4's. The IRS clearly is violating the law

when it instructs the entity to disregard the worker's

W-4; and the entity is violating the law when they alter

or dishonor the worker's form or claim [United States v.

Malinowski, 347 F. Supp. 352 in 1992]. Entities are not

responsible for misstatements made by the worker,

therefore the entity would not be liable for a tax which

should have been withheld [Holmstrom v. PPG Industries,

512 F.Supp 552, 554 DC WD Pa 1981. see also Murray v.

City of Charleston 96 U.S. 432 (1877)].

These IRS letters are called "lock-in letters." So,the

IRS now brings in Fresno Compliance Campus (FCC) to

assist them to snoop on entities while enabling the IRS

to identify serial questionable W-4 filers.

IRS Form 6450 sent by the IRS to the worker who wants to

refute the Questionable W-4 is absolutely useless, unless

the worker is current with filing the past three years of

tax returns AND has received a refund for the most

current year filed.

It appears the IRS is no longer allowing American workers

to claim exempt, and will usually try to impose a penalty

when you try.

On the other hand, most entities mistakenly believe they

have a lawful duty to comply with the IRS request for

these W-4 forms. (Could it be the entities received

erroneous information from their incompetent tax

professionals?)

According to the USGAO report dated 09/15/03, which

stated in part,"Under current law, the IRS does not have

statutory authority to impose a penalty to enforce

employer compliance with the reporting requirement. The

reporting requirement ws promulgated in Treasury

regulations."

One of our subseribers sent a follow-up about the

Questionable W-4 Program regarding the "Lock-In Letter"

issued by the fascist State of California which the

article mentioned, and threatens employers with civil and

criminal penalties per the codes below. Notice in the

State's letter it refers ONLY to employees of the State's

agencies and campuses, not the public sector!!!

IRC 6672 Failure to collect and pay over tax, or attempt

to evade or defeat tax.

Applies to persons required to collect and transmit any

tax imposed by this title. In the provision above it,

6671(b) Person defined: includes an officer or employee

of a corporation, or a member or employee of a

partnership, who.....is under a duty to perform the act.

IRC 7202 Willful failure to collect or pay over tax.

Applies to any person required under this title to

collect, account for and pay over any tax imposed by this

title.

So, under this title, this means:

1. The duly authorized withholding agent who has a duty

to collect and transmit ONLY WHEN the nonresident has

elected to volunteer (W-4) to have amounts withheld from

pay.

2. Those entities who are engaged in revenue taxable

activities, events or commodities who have a DUTY to

collect the tax and transmit it on a return.

3. The entity who has received a worker's voluntary,

written authorization ELECTING TO VOLUNTEER (W-4) to have

amounts withheld from pay for taxes, fees or other

charges.

These threats and penalties do not apply to entities who:

1)have NOT received the worker's explicit, voluntary,

written consent authorizing the entity to withhold from

the paycheck and, 2) have NOT received the worker's

explicit, voluntary completion and submittal of a

withholding certificate (W-4) or its equivalent.

CONCLUSION: ALL withholding from pay must be voluntary,

consensual and in writing. When you don't want to file a

new W-4, you may lawfully terminate any existing

withholding agreement. Workers cannot be compelled to

join any state or federal program, trust (social

insecurity), benefit (Medical) or privilege, etc.

P.S. This is some of the evidence Judge McBride refused

to be used in Dick Simkanin's trial. Had Dick's due

process not been violated, do you think the jury would

have found him guilty? Most likely not.

Original question:

If your employer sends in your exempt W-4 & W-2 forms

yearly to the IRS will this automatically trigger the IRS

computer?

Can you still get the IRS to code you exempt or will the

IRS forms sent in by your employer void this?

=================================================

No law compels a work eligible man or woman to submit a

Form W-4 (or its equivalent) or an SSN as a condition of

being hired or keeping one's job. With the exception of

an order from a court of competent jurisdiction, no

amounts can be lawfully taken from one's pay (for taxes

fees or other charges) without the worker's explicit,

knowing, voluntary, written consent.

http://www.preferredservices.org/Ax_the_Tax.1.html

The average man's love of liberty is nine-tenths imaginary. It takes a special sort of man to understand and enjoy liberty -- and he is usually an outlaw in democratic societies. --H.L. MENCKEN

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