what do they mean when they say you have no previous tax reliabilities?
2007-10-30 05:46:49 · 7 answers · asked by mmcchic23 1 in Business & Finance ➔ Taxes ➔ United States
i meant liabilities!
2007-10-30 05:47:12 · update #1
Means you don't owe taxes. Tax liability=taxes you owe
2007-10-30 05:50:27 · answer #1 · answered by JoJo 3 · 0⤊ 0⤋
Tax liability is how much you owe. No previous tax liability means that you have not owed taxes in previous years. Depending on the context, it could mean that all tax was paid or that there was not enough income to require paying taxes.
2007-10-30 12:53:15 · answer #2 · answered by Gypsy Girl 7 · 0⤊ 0⤋
You need to give up on this quest! If your employee files a Form W-4 that claims EXEMPT status you are required to accept it at face value. IF you have documentary evidence that the claim is false you can contact the IRS and ask them how to proceed.
When you file your payroll returns it will be obvious to the IRS that the person claimed EXEMPT. They will then request a copy of the Form W-4 that the employee signed from you IF they have any questions. Your ONLY obligation at that point is to send the IRS that copy! If the IRS has an issue with the employee's W-4, they will deal with the employee directly.
They may subsequently send you a letter directing you to withhold taxes at a rate that the IRS specifies. Your only obligation then would be to comply with the IRS instructions.
You are NOT the Payroll Police. That is the IRS' job. Accept the W-4 as completed, withhold Social Security & Medicare (and State income tax if your state doesn't allow EXEMPT claims) and pay the employee. THAT is your ONLY obligation right now. It is NOT up to you to determine if this person is properly claiming EXEMPT status.
2007-10-30 14:26:28 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋
Tax liability means you engaged in some activity generating income that the IRS considers taxable.
2007-10-30 12:50:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If this is for a W-4 form, it means that your tax for the previous year was $0, in other words, that either (a) you had nothing withheld for income tax AND owed nothing, or (b) that you received (or were entitled to receive) a refund of all the money that was withheld for income tax.
2007-10-30 16:39:19 · answer #5 · answered by StephenWeinstein 7 · 0⤊ 0⤋
A liability is any thing you owe (in financial terms), so a tax liability is a tax owed.
2007-10-30 13:04:13 · answer #6 · answered by Nothingusefullearnedinschool 7 · 0⤊ 0⤋
See previous answer
2007-10-30 12:50:05 · answer #7 · answered by Anonymous · 0⤊ 0⤋