My "place of exchange (work)" is at one of the Federal Home Loan banks (FHLB). I submitted a form w-4, not specifying any dependents, but rather I wrote in "Exempt" at line number 7. I included a footnote on the form that pretty much explained that I've opted out of Federal reserve banking.
Several weeks went by with no problem.
But then I received an email from the payroll department. Payroll informed me that the FHLB legal department will not accept forms w-4 (either Federal or State) with any verbiage on it that is not explicitly requested by the form. The email cited Illinois statute and IRS publications.
Silly me. The forms w-4 is intellectual property of the State, and I have no standing to change
their rules on how their forms are to be used.
I simply filled out corrected forms, still writing in "exempt", but absent the "...demand for lawful money..." verbiage.
All has been well ever since. No Federal or State income tax withholdings. Not a peep from Payroll or Legal.
sportiva27, I find it odd that the employer would ask
you about
their liabilites should they proceed under 12 USC 411. They're asking you for legal advice. Are you a licensed attorney?
P.S. Line number 7 on form w-4 (Federal) reads:
I claim exemption from withholding for 2011, and I certify that I meet both of the following conditions for exemption.
• Last year I had a right to a refund of all federal income tax withheld because I had no tax liability and
• This year I expect a refund of all federal income tax withheld because I expect to have no tax liability.
If you meet both conditions, write “Exempt” here . . . . . . . . . . . . . .
If the foregoing bullet points are true, then it is truthful, lawful, and legal to write in "Exempt". I suggest that you instill confidence in the employer that both conditions are met.