Civil Penalty Determinations

IRC Section 6682 and related tax regulations allow the assessment of a $500 civil penalty for furnishing false information with respect to withholding if

the statement made on the Form W-4, Employee’s Withholding Certificate results in less income tax withheld than would have been withheld if the Form W-4 had been correctly completed, and

there was no reasonable basis for such a statement at the time that the statement was made.

You may waive the penalty, in whole or in part, if the individual's income tax for the year is equal to or less than the sum of the credits under IRC Sections 21-54 and the estimated tax payments for that tax.

Civil penalty determinations may be required in cases involving a non-payment history, unfiled return(s), frivolous arguments and repeated underwithholding. Penalties must be assessed for the year that appears on the face of the Form W-4, Employee’s Withholding Certificate.