OSPS E-News ~ IRS Lock-In Letters

[Announcements]

Hello Everyone,

 

At a recent OSPS Payroll Forum, we presented information on the
requirements for processing IRS Lock-in Letters.  During the discussion,
we learned from you that some of the letters issued by the IRS
instructed you to implement the requirements of the letter at a future
date.  

 

OSPS contacted IRS representatives and learned that they are now
building in an implementation delay to allow the employee to contact the
IRS and present information that might lead to a cancellation of the
withholding "lock-in".  In other words, at the same time they are
sending you the letter, they are sending one to the employee.  It is
possible that the employee could present information to the IRS that
would cause them to release the agency from the withholding lock-in.
The delay may be as much as 60 days.  

 

We have updated the procedural guidance that we handed out at the
meeting to include information on the implementation delay.  A new
version is attached.  

 

 

 

Sharon McKeehan, Manager

Oregon Statewide Payroll Services

155 Cottage Street NE, U-50

Salem, OR  97301-3969

Phone: 503-378-6777 x230

 

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