IRS Form 4669- Statement of Payments Received

IRS Form 4669- Statement of Payments Received

Form 4669 is required when an employer does not withhold the required withholding tax from an employee/contractor, is later audited, and wishes to apply for relief under IRC 3402(d).

Section 3402 requires employers to withhold income tax on payments of wages, including reclassified wages and fringe benefits, subject to federal income tax withholding. Employers are also responsible under sections 3102 and 3202 for withholding a 0.9% Additional Medicare Tax from wages or compensation paid to an employee in excess of $200,000 in a calendar year. For more information on income tax withholding or Additional Medicare Tax, see Publication 15 (Circular E), Employer’s Tax Guide, the Instructions for Form 8959, or visit www.irs.gov.

Under section 3406, in the case of a reportable payment, a payor is required to withhold a tax equal to the applicable percentage of the reportable amount in certain cases (e.g., if the payee fails to furnish the payee’s taxpayer identification number in the manner required). This withholding is referred to as “backup withholding.” For more information on “backup withholding,” see Publication 1281, Withholding for Missing and Incorrect Name/TIN(s), or visit www.irs.gov and enter the term “backup withholding” in the search box.

Payors may also be required to withhold tax on certain payments made to a foreign person (individual or entity) subject to withholding tax under chapters 3 and 4. See Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities for more information.

What are your options?

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What is my first step?

If you received a letter or notice, a decision has to be made. Do you feel confident to handle this situation on your own? If it is a simple issue and you already know the answer, call or write them. If the problem is more complicated, you need to hire a Certified Tax Resolution Specialist. The IRS or State will take full advantage of your lack of knowledge and experience.

What is Your Next Step?

The next step is to determine if the notice was sent in error. Do you have an outstanding tax liability? Do you have unfiled or incomplete returns?

Is There a Time Limit?

Yes, each letter or notice from the IRS or State will indicate a date you MUST contact them. If you need more time, call the number on the notice or letter and request an extension. Please DO NOT ALLOW the time to expire without contacting them or hiring a representative to contact them for you.

What You Don’t Want to Do!

What you don’t want to do is nothing. Your tax problems will only get worse if you ignore them. If you cannot pay, there are several potential solutions available to those otherwise in compliance. In compliance means having all tax returns filed and any balances paid or on a payment plan. If you have outstanding debts or unfiled returns, you need to hire a Certified Tax Resolution Specialist.

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