In terms of the withholding procedures, which statement does not reflect current rules?
A)Penalties can be imposed for filing false information with respect to wage withholding.
B)An employer need not verify the number of exemptions claimed by an employee on Form W-4 (Employee's Withholding Allowance Certificate).
C)An employee may claim fewer than the number of withholding allowances allowed but not more.
D)In preparing the income tax return for the year, the employee is bound by the number of exemptions claimed for withholding purposes.

Question

Quizplus · Accepted Answer

The number of exemptions or allowances claimed for withholding purposes on Form W-4 does not limit or bind the employee when preparing their annual income tax return. Employees can claim a different number of exemptions or deductions on their tax return than what they claimed for withholding purposes.

In Terms of the Withholding Procedures, Which Statement Does Not