Irs Lock In Letter Unconstitutional. If you filed your 2016 return after april 15, 2017, the deadline is three years from the date it was filed. What this means is that if a taxpayer chronically claims too many withholding allowances, and generates significant tax balances when they file their return, the irs may “flag” them.
In most cases a lock letter will stand for 3 or 4 years. The irs will notify you to withhold at a specific rate if the employee’s request is approved. The following actions will land you in jail for one to three years:
You'll have to ask sometime after tax season next year.
The irs decides when the lock letter will be cancelled or modified. The irs will notify you to withhold at a specific rate if the employee’s request is approved. 1 this case serves as a reminder that employers should follow employees' instructions on withholding, but they should immediately implement any lock in letters they receive. A united states district court in pennsylvania recently held that employers are obligated to follow an irs lock in letter, and, as a result, cannot be held responsible by the employee for following the irs's instructions.