IRS Lock In letter – What It is and How To Fix It


An Lock In Letter from theIRS demands that a certain amount of taxes be withheld from the employee because they are not withholding taxes correctly. See our video below for an explanation, or keep reading on.

IRS Lock In Letter - What It Does and How To Fix It

People that owe tax debts from underwithholding taxes on their wages will eventually get this letter if they do not fix the underwithholding.  The employer is instructed to withhold taxes as if you were single with one dependent. The new withholdings are to take effect 60 days from the date of the letter.

There are actually two lockin letters sent, one to the employee and one to the employer. The one sent to the employer is a 2800C, while the one sent to the employee is a 2801C.

In order to fix the problem, the employee can appeal the decision and get the correct amount withheld if they are in fact married and/or have dependents. A correction is sent to the employer if the IRS approves the appeal. If you actually should be Single and claiming one depdendant, you might not win the appeal.

If the lock in is not appealed or if the appeal is lost. The employer is no longer allowed to lower the employee’s tax withholdings without approval from the IRS.

If you need help with your lock-in letter, dealing with tax debts, or both, call us at (888) 515-4829 or click here and fill out our intake form. If you are doing your case on your own, check out our free tax relief help guide.

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