Withholding lock-in letter

Letter 2800C · Letter 2801C

What it is

The IRS has determined that an employee's Form W-4 understates withholding and instructs the employer (2800C) to withhold at a specified filing status and withholding rate. The employee receives a 2801C. The employer must follow the letter even if the employee submits a new W-4 claiming less.

The clock it starts

The employer begins withholding under the lock-in on the date the letter states, 60 days after the letter date. The employee may contest the determination with the IRS before that date; a new W-4 that increases withholding may be honored at any time.

What a response has to establish

For the employee: the withholding computation that shows the W-4 was adequate, submitted to the IRS address in the letter. For the employer: compliance on the stated date and a record of it.

Authority

• IRC §3402
• Treas. Reg. §31.3402(f)(2)-1
• IRS Publication 15

For tax professionals. The date printed on the notice controls. CitedTax is a research and drafting tool; the reviewing professional validates every item before reliance.