Daily Tax Report ®

Case: Alleged Illegal Withholding Failed to State a Claim for Relief (E.D. Mich.) (IRC §7421)

Dec. 1, 2020, 5:00 AM

Simple allegation that IRS improperly withheld on a taxpayer’s income does not properly state a claim for relief, a district court held. Taxpayer alleged that the IRS increased his federal income tax burden by improperly withholding income without his permission and requested a refund. Taxpayer failed to file a return for 2016 despite working and earning $100,000. Taxpayer did have a Form W-4 on file with his employer. The IRS determined that Taxpayer was not entitled to claim certain exemptions or allowances and sent his employer IRS Letter 2800C (Lock-in Letter) specifying Taxpayer’s withholding rate and allowances. Taxpayer requested a...

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