you are correct as to avoiding penalties. the 12 month period refers to the period covered by the return not the number of months you worked. However, for an employer to withhold $0 you would have to claim enough in withholding allowances n a new W-4 for that to be the case. Probably more than you're entitled to. It is a misdemeanor federal offense to falsify withholding allowances. According to the IRS, a $500 fine can be applied to those who are caught knowingly raising allowances beyond a level that can be proven, resulting in less tax being withheld. If the IRS determines that an employee has falsified marital status or the number of dependents to pay less in taxes, the amount under-taxed is also likely to be sought.
