IRS has issued a draft version of New W-4 Form

IRS has issued a draft version of New W-4 Form
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IRS has issued a draft of 2020, W4 Form, Employee Withholding Allowance Certificate, which will address the employee withholding issues that have arisen as a result of Tax Cuts and Jobs Act of 2017.

The revised form implements changes made following the 2017 Tax Cuts and Jobs Act, which made major revisions affecting taxpayer withholding. The redesigned Form W-4 no longer uses the concept of withholding allowances, which was previously tied to the amount of the personal exemption. Due to changes in the law, personal exemptions are currently not a central feature of the tax code.

“The new draft Form W-4 reflects important feedback from the payroll community and others in the tax community,” said IRS Commissioner Chuck Rettig. “The primary goals of the new design are to provide simplicity, accuracy and privacy for employees while minimizing burden for employers and payroll processors.”

The IRS and Treasury collected extensive feedback over the past year while working closely with the payroll and tax community to develop a redesign that best serves taxpayers.

The IRS expects to release a near-final draft of the 2020 Form W-4 in mid-to-late July to give employers and payroll processors the tools they need to update systems before the final version of the form is released in November. To make additional improvements to this initial draft for 2020, the IRS is now accepting comments for 30 days. To facilitate review of this form, IRS is also releasing FAQs about the new design.
The IRS anticipates the related instructions for employers will be released in the next few weeks for comment as well.

The IRS reminds taxpayers that this draft Form W-4 is not for current use, but is a draft of the form to be used starting in 2020. Employees who have submitted a Form W-4 in any year before 2020

Hassan Sultan, CPA, CVA AdministratorKeymaster
Hassan Sultan has over 20 years of experience in the areas of taxation, business valuation, and non-profit financial management. His scope includes income tax preparation for individuals and businesses of all types, trusts, and outsourced CFO services to non-profit organizations. He also provides business valuation and litigation support. Hassan earned a bachelor’s degree in management from the University of Florida and an MBA from Carnegie Mellon University.
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