Question: 26. Arch gives you an amended Form W-4 dated March 15, 2006, on which he claims two additional withholding allowances. He asks you to refund

26. Arch gives you an amended Form W-4 dated March 15, 2006, on which he claims two additional withholding allowances. He asks you to refund the excess taxes that were deducted from January 1 to March 15 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 15 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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