The IRS uses Letter 2802C to inquire whether you are correctly withholding taxes from your wages on Form W-4. If you don't respond or change your withholding direction to your employer, the IRS will likely send you Letter 2801C to override your declaration of withholding allowances from Form W4 by instructing your employer (Letter 2800C) to withhold at the -single, zero- withholding rate.
Response to Letter 2802C
There could be several reasons why this has occurred. Often, it is because the IRS believes that you are not entitled to claim a certain number of exemptions or to claim exempt from withholding.
People may claim "exempt" from tax withholding or claim a large number of exemptions for many reasons. If you received Letter 2802C you need to meet with your employer & calculate the correct withholding allowances to file a correct Form W4.
However, many people are correctly claiming the allowed number of exemptions and the IRS made a mistake in sending the letter.
If that is the case, please follow the Prep Steps & call our office. We need to investigate why this has occurred and what steps to take to reverse this unilateral IRS decision.
