The Tax Cuts and Jobs Act: Withholding Form W-4 Update

          A few months ago, the IRS debuted a draft of what the Form W-4 would look like next year. You can read our post discussing it here. The key point is that it was a draft. The IRS expected to make changes before putting it into use and wanted to hear feedback on the adjustments. Apparently, there was a great deal of response. So much so, that this new form will not be used until 2020 at the earliest.

          The feedback led the IRS to take a hard look at what they were trying to do, and decided to use a temporary Form W-4 for 2019 in its place. The plan is to create the new Form reflecting changes made by the TCJA by 2020. They need more time to give appropriate guidance on how to handle withholding. This is more evidence that clearly shows how fluid the Tax law situation is, and the nothing can be taken for granted.

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