What This Notice Means
This notice goes to employers. At some point, the IRS sent you instructions specifying a withholding status and withholding rate for one of your employees. Those instructions are often called a lock-in. This notice releases them.
You no longer have to follow the IRS-specified withholding for that employee.
What to Do
- Accept any valid Form W-4, Employee's Withholding Certificate, that the employee submits in the future.
- If the employee doesn't give you a valid Form W-4, withhold as if the employee is Single or Married filing separately.
- Read the notice for any additional details that apply to this employee.
- Keep this notice with the employee's payroll records.
Update Your Payroll System
If your payroll provider or software was set to the IRS-specified rate, change it. Leaving the old setting in place means you keep withholding at a rate the IRS no longer requires.
Let the employee know the lock-in has been released so they can submit a new Form W-4 if they want to.
Where to Find Withholding Rules
- Publication 15 (Circular E), Employer's Tax Guide.
- Publication 15-T, Federal Income Tax Withholding Methods.
- Publication 51 (Circular A), Agricultural Employer's Tax Guide, for agricultural employers.
Your Business Tax Account lets you view records and messages online. If you have questions about this notice, call the number on your notice.
If you received a CP2809 notice and have payroll tax questions, call us at (813) 229-7100.