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Posted

I had one client mention about 2 weeks ago that he got a letter saying he should review his withholding allowances and if necessary file a new W4.  He has withholding at Single-1, hasn't recently changed his allowances, and isn't under or over withholding. It slipped my mind until a new client called today and said she had received the same letter, been on the job for 3 years, hasn't changed w/h and is withheld at single-0.

anyone else heard of these going out?  I think the IRS notice computer hiccuped, but want to put it out there. I'm seeing the new client next week, so she'll bring the letter with her. 

Posted

Did the client owe last year?  I have a couple of these with my clients, but they all owed.  I thought it was a good thing.  IRS telling them what I have been telling them for years...you need to withhold more.

Tom
Newark, CA

  • Like 2
Posted

These letters are complimitary of the IRS, if your client was to call the number on the letter  they say it was a mistake and that letters are sent out automatically.

Posted

These were both new clients, but did not owe, or at least nothing out of the ordinary. Haven't seen the last ones returns yet, but from what she said, she always got refunds. 

Posted

Blame it on the IRS' computers and tell your clients to ignore the letters.  Unless, as with @BulldogTom (and I could think of a couple of mine with the same issue) you've been telling them for years to increase withheld tax and they don't listen to you.

  • Like 1
Posted

The IRS doesn't want a call. Sounds like it's just an FYI letter.

I got one about 6 years ago where the IRS told their employer to change their W4 to Single 0, because client owed 2 grand every year and kept rolling over installment plans.

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