Trey, as someone who's a stickler about IRS laws regarding contractor vs. employee status, I'm disappointed that you don't have the same regard for the laws governing Form W-4. It is illegal to willfully submit false or fraudulent information on Form W-4, punishable by a $500 penalty. There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both.
Examples: Proof of Willfulness (from the Dept of Justice)
1. Evidence that prior to the year in which he falsely claimed nine exemptions, the defendant had filed tax returns and paid his taxes, and had not claimed any exemptions; the Form W-4 filed by the defendant clearly showed that he was entitled to no more than two exemptions; and the defendant testified that he claimed nine exemptions to "zero out" his tax liability. United States v. Cree, 62 F.3d 1426 (9th Cir. 1995).
2. Evidence that the defendant had a tax liability in a prior year, and then filed a Form W-4 in which 99 exemptions were claimed, as well as a document that falsely declared he had no tax liability in the prior year and anticipated none in the year in issue. United States v. Arlt, 567 F.2d 1295, 1298 (5th Cir.1978); United States v. Grumka, 728 F.2d 794, 797 (6th Cir. 1984).
Re: Inhouse vs Contractor
Member #: 40737
Registered: 9/16/2005
Posted:
123
Name:
David Schreiber
Name:
David Schreiber
Company:
Total Facility Management
Occupation:
owner
Location:
Southern IL
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