The IRS on May 31, 2019, unveiled a revised, new draft of the 2020 Form W-4, Employee’s Withholding Allowance Certificate. An earlier version of the new Form W-4 was released in June of 2018.
New Draft 2020 Form W-4
The new, revised 2020 Form W-4, still very much in draft stages, becomes effective on January 1, 2020. The IRS has emphasized that employees who have already submitted a Form W-4 prior to 2020 would not be required to complete a new form merely because of the redesign.
Key comments announced by the
IRS in Notice IR-2019-98 include:
- The new draft 2020 Form W-4 implements major changes made to withholding under the Tax Cuts and Jobs Act (TCJA) (P.L. 115-97);
- The redesigned Form W-4 will no longer use the concept of withholding allowances;
- The IRS expects to release the final version of the new 2020 Form W-4 in November;
- The IRS anticipates the related instructions for employers will be released at approximately the same time.
- For 2019, taxpayers should continue using the current Form W-4.
The proposed new Form W-4 is expected to provide taxpayers with a more accurate withholding system that is easier for employees to understand and use.