IRS W-4 draftIRS
The Tax Cuts and Jobs Act of 2017 (TCJA) is about a year old, and the Internal Revenue Service (IRS) is still disturbing to bulk out how to abetment taxpayers with their denial beneath the new law. The advance from Congress to accomplish things “simple” bureau that abounding taxpayers ability not be denial abundant – and that may not change any time soon.
In February, the IRS appear an updated form W-4, Employee’s Denial Allowance Certificate (downloads as a pdf) to reflect changes in the new tax law. But the anatomy didn’t awning situations for all taxpayers. So, in June, the IRS appear a draft version of an adapted anatomy W-4—this one for 2019—on its website (downloads as a pdf). That abstract was anon met with criticism from tax professionals who feared that it ability not assure taxpayers from claiming the amiss withholding.
The IRS acutely accepted criticism, admonishing on the abstract W-4 that “we ahead it is acceptable that this anatomy will change afore actuality appear as final.” The bureau promised to revisit the form, and this week, issued a account acknowledging that it will not absolution a 2019 anatomy W-4 which is decidedly altered from the accepted form. A new abstract of that anatomy for 2019 will be accessible in the advancing weeks, but it will attending like the 2018 version.
As to the pushback? It was not insignificant. Tax professionals wrote belletrist cogent their apropos included Jean C. Nelsen, admiral of the National Association of Enrolled Agents (NAEA) and Annette Nellen, armchair of the AICPA Tax Executive Committee. Nelsen alleged the abstract anatomy and instructions “too continued and too complicated,” pointing out “the aborigine is directed to advertence up to 12 added publications and forms” (You can apprehend the NAEA letter in full here). Nellen additionally alleged the anatomy “unduly complicated,” acquainted that it “essentially requires taxpayers to account their tax liability.” (You can apprehend the AICPA letter, which downloads as a pdf) in full here.)
In response, the IRS has adumbrated that “Following acknowledgment from the bulk and tax communities, the Treasury Department and the IRS will absorb important changes into a new adaptation of the Anatomy W-4, Employee’s Denial Allowance Certificate, for 2020.” The new adaptation will advice advisers advance denial accuracy, and absolutely reflect changes included in the Tax Cuts and Jobs Act.
That’s right. To be clear, a law that Congress pushed through at the end of 2017, which was able alpha in 2018, won’t accept bright advice for taxpayers on denial until 2020.
It would be accessible to accusation IRS for not responding added quickly. But a abundant accord of accusation lay at the anxiety of Congress who pushed through a acting tax cut which they promised would aftereffect in a tax acknowledgment that could fit on a postcard. The problem, of course, is that we don’t accept one-sized fits all taxpayers and the Tax Code still charcoal absolutely complicated. Pushing through changes that alone administer for a few years doesn’t help. And abounding of those tax changes – like the accident of the claimed absolution bulk and the acceleration of the accepted answer – are so across-the-board that abounding taxpayers absolutely don’t apperceive what their absolute tax accountability should attending like in 2018. Or 2019.
In the meantime, the IRS advises taxpayers to booty advantage of the new Denial Calculator which reflects changes beneath the new tax law. (You can acquisition the new denial calculator on the IRS website here.)
But as for a new anatomy W-4? As with tax reform, we’ll alone accept a acting adaptation for aing year.
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