Is it legal to ask an employer to not withold taxes from your payroll?

Answer 1

IRS will come down on you like a ton of bricks if you claim 99 exemptions or some such nonsense. Your employer could get in trouble if they participate in any tax protest scheme. No body likes to pay the income tax, but it is the law. Kooks scream about the Federal Reserve, the 16th Amendment etc., but all of these claims have been litigated and the tax protesters have lost.

Answer 2

You can ask your employer, but the employer can not legally comply. An employer is required to receive a W-4 from the employee stating the number of exemptions the employee claims. If you do not submit the W-4, payroll is required to deduct as if you were claiming Single with 1 exemption. The higher number of exemptions, the lower your taxes taken will be.

Since it is not payroll's job to know your tax situation, you can claim as many exemptions as you want, however, if you end up owing taxes, the IRS can they issue a "lock-in" letter which will require the employer to deduct based on the exemptions the IRS says is accurate and that can NOT be changed by the employee. The IRS will have to recind the lock-in letter.

Answer 3

You can fill out a W4 and put "EXEMPT" on the bottom line, and then no Federal tax will be withheld on your paychecks. But, they will still take out Social Security and Medicare---you do not get a break on that. However, if you do claim an Exempt status, you better make sure you are doing that because you know you will definitely get a refund when next tax season rolls around-in other words, you have no tax liability. Otherwise, you will find out that you owe the IRS big time if you have done that fraudulantly just to try to get out of paying any taxes all year.

Answer 4

It's legal for you to ask. It's just illegal for your employer to honor the request.

You notify your employer of how much tax to withhold by filing Form W-4 with them. The use that to determine your withholdings.

If your employer has good reason to believe that you are filing a fraudulent Form W-4 they are required to notify the IRS and supply a copy of the Form W-4 to the IRS if they ask.

Answer 5

No. You as a taxpayer are required throughout your earning year to stay as close to -0- as possible.
If you earn anything over 8,000.00, it is going to be expedient for you to have earnings taxed, social security paid, and medicare too.
The only way an employer wouldn't withhold any or much is if your income and filing circumstances were such that you do not owe any taxes at the end of the year. ie; You make under 12,000. and you have 3 dependents..... Exempt. But, SS & Medicare & poss State would still be taxed....

www.irs.gov, individual, withholding calculator

good luck & bless

Answer 6

It's legal only if you don't expect to have any tax liability for the year. You'd file your W-4 as "exempt". They'd still withhold social security and medicare, but not income tax.

Answer 7

the federal statute says you are able to claim withholding exemptions but to ask not to withhold any taxes is not allowed. Most state statutes say the same. Many before you have tried the same thing check out the library of congress for the supreme court rulings on the matter, it is a little dry reading but can be hilarious.

Answer 8

It all depends whether you are considered an employee or independent contractor (refer to irs.gov and check out the differences).

If you are considered an "employee", going to an employer not to take out taxes will be considered illegal. Social security and Medicare taxes must be
withheld for an employee; you can claim up to 4 allowances, so your Federal Withholding would be zero).

Answer 9

Line 7 on the W-4 is used to claim 'exempt' from Federal income tax withholding. There are two conditions you must meet to legally claim 'Exempt'. I copied that section of the form below:

I claim exemption from withholding for 2007, and I certify that I meet both of the following conditions for exemption.
c Last year I had a right to a refund of all federal income tax withheld because I had no tax liability and
c This year I expect a refund of all federal income tax withheld because I expect to have no tax liability.

FICA taxes must be withheld even if you are exempt from income tax withholding. State taxes probably vary by state.

Answer 10

It's legal to ask (you can ask for almost anything) but it's illegal for them to do so. Employers are required to withhold taxes. Otherwise too many people would opt out of withholding and not be able to pay taxes when the time comes.