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Arch Gives You an Amended Form W-4 Dated March 8

Question 48

Multiple Choice

Arch gives you an amended Form W-4 dated March 8, 20-- on which he claims two additional withholding allowances. He asks you to refund the excess taxes that were deducted from January 1 to March 8 when Arch claimed only one withholding allowance. You should:


A) repay the overwithheld taxes on Arch's next payday.
B) tell Arch that you will spread out a refund of the overwithheld taxes equally over the next six pays.
C) inform Arch that you are unable to repay the overwithheld taxes that were withheld before March 8 and that the adjustment will have to be made when he files his annual income tax return.
D) tell Arch to write the IRS immediately and ask for a refund of the overwithheld taxes.
E) inform Arch that you will appoint a committee to study his request.

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