IRS Releases New Draft of Form W-4 for Use in 2020, June 20, 2019

June 20, 2019

In response to changes made by the 2017 tax reform legislation (including the suspension of the personal and dependency exemptions) and the difficulties many taxpayers had in gauging accurate withholding obligations for the 2018 tax year, the IRS has released a revised Form W-4 draft for comment. Generally, employees are not required to complete a revised Form W-4 if they have already submitted a W-4. Employees hired beginning in 2020 will be required to complete the new form. The IRS anticipates releasing a final version of the form in November, but will provide instructions for employers with respect to the draft form in the coming weeks. Importantly, the IRS encourages employees who continue to rely upon previous versions of the Form W-4 to complete a "paycheck checkup" to avoid surprise tax liability next year. For more information on the impact of the suspension of the personal exemption, visit Tax Facts Online.