Quote:
|
Originally Posted by StarTet
If I m not mistaken, he (or his website) seems to be advocating that we fill out a W-4 but provide it to our employer with a notarized 'Qualifying Declaration' that states that only 'wages' as defined by IRC 3401 can be withheld and futher you are declaring that you are not a federal employee subject to withholding.
|
The theory that, according to IRC 3401, only federal employees earn "wages" and thus are subject to withholding is nothing but tax protester garbage that very liberally eschews the meaning of that code section. I would strongly advise you not to take this advice. Rather, figure your annual income and estimate how many exemptions you can take so that not too much is withheld, I usually claim one more exemption than I have and then look at the situation after I have gotten 3 or 4 paychecks.
You may not like withholding, but is it worth dealing with the IRS, paying penalties, losing your job, or going to jail in order to weasel your way out of it? As far as FICA taxes are concerned, the SSA has zero tolerance for people or employers who screw around with FICA withholding - if you think the IRS is bad, there is no better way to get a rubber glove where you don't want it than to screw with FICA withholding. I have lost a tax client to the SSA in that manner, and it didn't take them long to jump in.