Legal Question in Tax Law in Maryland

26 CFR 31.3402(p)-1

I am under the understandin that this allows me to give my employer written notification to terminate my voluntary withholding agreement, without claiming any exempt status. If so, what do I do if my employer refuses to do so?


Asked on 5/27/99, 4:53 pm

2 Answers from Attorneys

MYRON LEWIS MYRON LEWIS

Re: 26 CFR 31.3402(p)-1

1. Why do you think you shouldn't have to pay Md. w/h taxes? Do you have lots of kids? Do you have losses from other investments? If you have legal reasons to avoid w/h, you can avoid w/h. Good luck!!!

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Answered on 6/04/99, 11:15 am

Re: 26 CFR 31.3402(p)-1

Don't just be under an understanding.

Get a copy of the law and read it. Unless

you are then sure, ask a lawyer to read it over, too.

More importantly, present a copy to your employer when

you make your request and just avoid having them refuse.

I wouldn't be asking the question 'what if they refuse'; why should they? It's probably no skin

off their nose if they're abiding by the law and they don't make a penny on your

withholdings, right? And if they did refuse and you were to try

to sue them for money damages, there are none! You're completely credited with the tax authorities

with the taxes withheld (and there are penalties for underpayment and interest charges for paying

later in the year what you should have been paying within each quarter so you could

even end up better off by withholding. The only thing you could sue for would be

compliance with your orders, no money damages, as an injunction. It will cost you time, money,

time away from work, and you could lose your job. So don't focus so much on what to do

if they refuse but try to get them to comply voluntarily.

I have not read the reg. you cite and don't necessarily agree that you have the right you understand

yourself to have. If you get it and want me to read it, send it to me via e-mail to [email protected]

or by fax to (617) 527-1763 (along with your e-mail address for me to use to reply), or by snail mail

to Stuart Williams

Law Offices of Stuart J. Williams

21 Walter St.

Newton, MA

02459-2509

Good luck.

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Answered on 6/01/99, 1:57 pm


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