Hello Barry

The IRS has sent my employer a letter, instructing them to disregard my current w-4. And change my status from married to single 0.

I have contacted my employer and their legal department with at least three different letters with exhibits showing them that I'm not in agreement with this and it is illegal for them to give my pay to a third party without my consent and without a court order. They have disregarded my letters and have not responded to them.

Do you have anything that will stop my employer from doing this? Thank you.

ANSWER:
Since 26 USC § 7433 says, "(a) In general If, in connection with any collection of Federal tax with respect to a taxpayer, any officer or employee of the Internal Revenue Service recklessly or intentionally, or by reason of negligence, disregards any provision of this title, or any regulation promulgated under this title, such taxpayer may bring a civil action for damages against the United States in a district court of the United States." And since what the IRS and employer did is contrary to the statutes (26 USC § 3401 et seq.). And since most of us do not want to face off with a US Attorney in court. It would seem to make sense to pursue the administrative remedy in 26 CFR § 301.7433-1 (e) Procedures for an administrative claim — "(1) Manner. An administrative claim for the lesser of $1,000,000 ($100,000 in the case of negligence) or actual, direct economic damages as defined in paragraph (b) of this section shall be sent in writing to the Area Director, Attn: Compliance Technical Support Manager of the area in which the taxpayer currently resides." and let the Compliance Technical Support Manager tell the IRS what they did wrong and then let the IRS tell your employer to restore your withholding status to what you agreed to. My "Calling Off the Dogs" package has all the research on how the use this statute and regulation and sample letters that have worked on other issues collected up in one spot. If you have the time, you can do all this research yourself. It has been my experience that legal maneuvers of type are most effective when I have made an attempt to understand all of the nuances involved in advance. I expect that this will be your experience as well. Probably the quickest route to getting a letter in is to read the notes files that I compiled while reading all of the cases that are in the "Calling Off the Dogs" package. I saved off whatever seemed important in the notes file.

Bear

Send this article to your friends         Donate to help fund our work