Excess Withholding

Employers are required to submit to IRS Forms W-4, "Employee's
Withholding Allowance Certificate," claiming more than 10 allowances
and those claiming exemption from withholding if the employee's
wages are more than $200 a week. Th IRS may then contact a
taxpayer to substantiate the information on the W-4. In cases where
the taxpayer cannot substantiate the Form W-4, the IRS may notify
employers to reduce the number of withholding allowances and may
assess the taxpayer a penalty for filing a false Form W-4. Respond to
a notice regarding W-4 information to the IRS office or service center
that initiated the request.

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