what is the withholding compliance program 
the withholding compliance program established by the irs identifies taxpayers whose payroll deductions appear to be in error so that they can remedy the deficiency 14the bottom linewithholding is the amount deducted from wages for taxes federal state or local all wage earners in the u s have federal taxes withheld most have state taxes withheld and some have local taxes to pay as well if more than enough taxes are withheld throughout the year the taxpayer will receive a tax refund after filing an annual tax return if withholding is insufficient the taxpayer is obligated to pay the remaining tax obligation employees must complete a form w 4 to indicate what should be withheld for taxes based on their personal situation the irs provides a tax withholding estimator that taxpayers can use to estimate how much they should withhold 