Question: We received a “lock-in” letter from IRS for an employee who no longer works with us. How should we proceed?

A: IRS will send a lock-in letter to an employer after it determines an employee hasn’t withheld enough tax. The notice contains the maximum number of withholding allowances the worker is able to claim while fulfilling their tax obligations. In the past, if an employer received a lock-in letter for an employee who…

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