"coloradotaxguy" <XXX[at]nospam.promessage.com> wrote:

- quote -

snip

See 31.3402(f)(2)-1T. W-4s no longer have to be submitted
except if IRS asks for them or publishes further guidance
requiring W-4s be submitted. The more than 10 requirement
is gone, effective 4-14-05.

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Sure you can. However, any W-4s claiming more than 10
exemptions are sent to the IRS for review. Also, remember
than you're signing the W-4, attesting that it's "true,
correct & complete" to the best of your knowledge.

My advice is to file as early as possible in '06. Also, how
do you know that they overwithheld unless you've already
calculated you're '05 taxes? Chances are you may be up in
the next rate bracket.

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"malakito" wrote:

- quote -

The W-4 is signed under penalty of perjury, and both the
civil penalty and criminal statutes mechanically limit the #
of allowances to that which comes out by following IRS
instructions and worksheets. So, refer to IRS Publication
505 and see if your scenario fits; however, if it does, it
will not permit claiming 99. Prosecution will not happen
because of the Justice Dept's views on this particular Code
section, but one is not exposed to the civil penalty either
after struggling through that Pub and claims whatever comes
out.

Fred F.

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I just elected to accept a voluntary severance package
from my employer. My last day will be 10/31/05 and I
am planning at this point on trying to get my severance
payment paid to me in 2005.

Since my severance payment will be taxed at the bonus
rate and is equal to nearly 8 months of salary, I
believe that they will withhold more than enough to
cover my federal and state income tax obligations for
the entire year.

In the meantime, I would like to therefore stop federal
and state withholding from my paychecks.

Can I set my federal and state exemptions to 99 in
order to accomplish this?

Thanks!

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