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From: tonti@ptsfc.UUCP (Guy Tonti)
Newsgroups: net.taxes
Subject: Re: Adjusting your withholding exemptions
Message-ID: <542@ptsfc.UUCP>
Date: Wed, 5-Mar-86 15:46:57 EST
Article-I.D.: ptsfc.542
Posted: Wed Mar  5 15:46:57 1986
Date-Received: Sat, 8-Mar-86 21:56:56 EST
References: <196@analog.UUCP>
Organization: Pacific * Bell, San Francisco
Lines: 17
Summary: 80% raises a red flag

In article <196@analog.UUCP>, kim@analog.UUCP (Kim Helliwell          ) writes:
> 
> You should remember that the important concern for the IRS is that you
> not owe THEM too much at the end of the year ( > 200-400$, I believe).
> They don't like to give interest-free loans, either!
> 
> hplabs!analog!kim

A few years back I asked a CPA friend about this, and he stated a good
rule of thumb is that if you have less than 80% of your total federal
tax liability withheld, it raises a red flag at the IRS and all kinds 
of mean and nasty things will happen! 

(What he said was they can make you pay interest on the amount not withheld, 
and put some type of lien on future wages, including quarterly reviews of 
tax owed, to insure it not occurring again.  He also said they can come down 
pretty hard on the preparer of this return, which he did not elaborate on.)