Hello, I would like to quickly comment on this issue, which is to say the "lock-in" process (or the 'LTR 2801C'), the IRS abuses purely under a 'color of law' as surely your payroll dept. could very readily provide the IRS your recent withholding history and as well the IRS most certainly has all of your prior tax filing on microfiche. Below is an excerpt from a notice I had sent to my payer last year:Originally Posted by jesse james
Concerning 26 U.S.C., to date by way of my own research, I have been unable to locate any statutory authority directly empowering the IRS to issue its infamous “lock-in” letters as “single and zero” by proxy, which so being the case indicates that all such letters are in reality 'color of law' bootleg documents providing no binding legal obligation for enforcement and that all such notices are but contrived farces. The IRS has been granted only authority to implement procedures through regulations to establish for individuals their legitimate claim of allowances for deductions, exemption, etc. as so defined by statute, they have not been granted authority to restrict such rights from them (notwithstanding that they have also been granted authority to issues civil penalties upon those that are committing fraud with concern to such allowances, e.g., 26 U.S.C. § 7205).
i. The only regulatory statute I have located on this subject matter pertains to only authorizing such increases in withholdings at the employee’s request, see 26 U.S.C. 3402(i)(1) — ‘Changes in withholding’:
“The Secretary may by regulations provide for increases in the amount of withholding otherwise required under this section in cases where the employee requests such changes. …”
See: http://www.law.cornell.edu/uscode/ht...2----000-.html
ii. The only regulation concerning such notices/letters is found within 26 CFR Sec. 31.3402(f)(2)-1(g)(2)(i) — ‘Withholding exemption certificates’ (which (being merely a 'regulation') is superseded in context by the scope prescribed under statute) and is intended only to ensure that employees are claiming only what they are lawfully entitled to and not to be enforced as a venomous form of maximum withholding punishment (the IRS does none of the below, save for issuing the harrassing letter):
“Notice of the maximum number of withholding exemptions permitted--(i) Notice to employer. The IRS may notify the employer in writing that the employee is not entitled to claim a complete exemption from withholding or more than the maximum number of withholding exemptions specified by the IRS in the written notice. The notice will also specify the applicable marital status for purposes of calculating the required amount of withholding. The notice will specify the IRS office to be contacted for further information. The notice of maximum number of withholding exemptions permitted may be issued if--
(A) The IRS determines that a copy of a withholding exemption Certificate submitted under paragraph (g)(1) [“An employer must submit to the Internal Revenue Service (IRS) a copy of any currently effective withholding exemption certificate as directed in a written notice to the employer from the IRS or as directed in published guidance.”] of this section or otherwise provided to the IRS contains a materially incorrect statement or determines, after a request to the employee for verification of the statements on the certificate, that the IRS lacks sufficient information to determine if the certificate is correct.
(B) The IRS otherwise determines that the employee is not entitled to claim a complete exemption from withholding and is not entitled to claim more than a specified number of withholding exemptions.
…”
See: http://edocket.access.gpo.gov/cfr_20...02(f)(2)-1.htm
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