Re: IRS Pub 505/during year withold??


joeu2004@xxxxxxxxxxx wrote:
> ed wrote:
> > there is no falsifying if you are trying to withhold the corect
> > amount.
>
> We both agree that the OP has nothing to worry about.
> So the OP should stop reading at this point, lest he find
> fuel for his undue concerns. However ....
>
> > you re not required to withhold from anything except wages
>
> Technically wrong. Withholding is required (by default)
> on a variety of other income sources, including periodic
> pension and annuity payments, some gambling winnings,
> and most payouts of investment income.
>
> In all cases, you can file a waiver with the payer. But in
> all such cases, you are expected to make estimated tax
> payments yourself. If you do not prepay any tax at all,
> either through withholding or through estimated tax
> payments, you could be subject to more than the simple
> underpayment penalty.
>
> > how could they justify fining you for voluntarily withholding
> > the wrong amount from a pension?
>
> Because you take an oath, albeit voluntarily. By
> analogy, most witness testimony (certainly the defendant's)
> is voluntary in a trial. But if you give knowingly-false
> testimony, you can be subject to punishment due to
> perjury. The same applies to the W-4(P).
>
> But I do not want to give undue weight to the threat
> on the W-4(P) forms. Since you do not include the
> worksheets when you file a W-4(P), there is very little
> information that can be "knowingly false". As far as
> the number of allowances is concerned, the IRS would
> be hard-pressed to prove perjury (which requires intent)
> except for wildly high numbers.
>
> (And even then, the IRS usually simply slaps your hand
> and requires withholding at a lower number allowances.)
>
> > Ignore the threats, however, the underwithholding
> > penalties (simple interest) do apply to anyone not
> > paying in enough in advance.
>
> Agreed: much ado about nothing.

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