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Publication 15 (2023), (Circular E), Employer’s Tax Guide

Publication 15 – Introductory Material

A civil penalty of $500 applies if a taxpayer claims withholding allowances that are based on false information. Note that a criminal penalty can also apply to a willful failure to supply information or for willfully supplying false or fraudulent information regarding withholding, which is an additional fine of up to $1,000 and/or up to one year in prison.

IRC 6682(a)(2)

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