W4 Withholding Issues

Employer not required to obtain worker status determination before withholding taxes

Nino v. Ford Motor Company, DC MI, 102 AFTR 2d ¶2008-5215, Dkt. No. 07-13545, 8/8/08

A federal district court has dismissed an employee’s pro se (“for self”; non-attorney) complaint that he should not have had withholding deducted until his employer obtained a worker status determination from the IRS.

The employee had been claiming to be exempt on his Form W-4 when the IRS instructed his employer to disregard the W-4 and begin withholding from him as if he were a single person with no deductions. The employee argued that his employer was “statutorily required to secure a determination of Worker Status for Purpose of Income Tax Withholding” before it could begin the tax withholding process. The employee’s sole support for this premise was the existence of Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.

The court dismissed the complaint, based on the Form SS-8 instructions, which note that completion of the form is not mandatory. Page 5 of the instructions state that “neither employers nor workers are required to request a status determination, but if you choose to do so, you must provide the information requested on this form.” The court pointed out that withholding federal income tax and making payments to the IRS are mandatory duties for employers under IRC §3102(a) and IRC §3402(a).

The court also noted that when a plaintiff “is challenging federal income tax withholding, his exclusive remedy for a tax refund is an action against the United States.” The plaintiff who was the subject of this ruling chose to sue his employer, rather than the United States. He therefore would not have been entitled to any relief even if his argument had been valid.

For tax problem resolution CLICK HERE.

Client Reviews
★★★★★
Mike has given us peace of mind! He helped negotiate down a large balance and get us on a payment plan that we can afford with no worries! The stress of dealing with the IRS is huge and Mike helped us through it all. The peace of mind is invaluable, thank you Mike!April S.
★★★★★
Mike Habib - Thank you for being so professional and honest and taking care of my brothers IRS situation. We are so relieved it is over and the offer in compromise process went just as you said. Mike is very professional and will give you honest answers to the OIC process and you can really trust him. You won't be sorry you chose him!Joe and Deborah V.
★★★★★
Mike is a true professional. He really came thru for me and my business. Dealing with the IRS is very scary. I'm a small business person who works hard and Mike helped me see that they are not that scary after all. He was always there with the answers I needed and was very good about calling me back which I appreciated since your first reaction is to freak out and ask a million questions. He solved a messy case and worked very hard to resolve it. His rates are VERY reasonable for the amount of work he does! I give him my highest recommendation!Marcie R.
★★★★★
Mike was incredibly responsive to my IRS issues. Once I decided to go with him (after interviewing numerous other tax professionals), he got on the phone with the IRS immediately (as in the same day I signed with him) to squash an impending issue. And he worked directly with them to quickly come to a resolution I am very happy with. I'd highly recommend reaching out to Mike to see if he can help you with any IRS issues. I'm very satisfied!Marshall W.
★★★★★
I’ve seen and heard plenty of commercials on TV and radio for businesses offering tax help. I did my research on many of them only to discover numerous complaints and unresolved tax issues. I found Mike Habib through my own online search and contacted him. He was very professional with great communication, always answering my questions and concerns. Mike resolved my complicated tax problem just as he said he would. I would definitely recommend his services to family and friends.Nancy & Sal V.

BBB Accredited Business
Trust Link
California Society of Enrolled Agents
NAEA
NATP
Enrolled Agent