Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? LTR99C
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? The IRS determined you aren’t entitled to claim “exempt” status or a certain number of withholding allowances on your Form W-4.
- What should you do if you receive this notice? You have 30 days from the letter date to ask for a change to their decision. Provide supporting documents like your Form W-4 (with worksheets), recent pay stubs, social security numbers and birthdates of dependents, and a copy of your latest tax return.
FAQs & Additional Information
- What happens if the IRS decides my withholding is still too low? They may issue a “lock-in letter” to your employer, requiring them to withhold at a specific rate. You’ll get a copy and have limited time to submit a new Form W-4 if you believe you qualify for a different rate or number of allowances.
- What if I don’t give my employer a Form W-4? Your employer must withhold taxes from your pay as if you’re single with zero allowances, which typically results in higher withholding.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.