The Tax Cuts and Jobs Act of 2017 (TCJA) is almost a year old, and the Internal Revenue Service (IRS) is still struggling to assist citizens with their withholding under the new law.
In February, the IRS released an updated form W-4 that reflected changes from the new tax law. The form was distributed with a disclaimer. The IRS said “we anticipate it is likely that this form will change before being released as final.” As anticipated, the form wasn’t comprehensive enough, and left too many taxpayer situations unaddressed. Assessment experts explained that citizens were still at risk for incorrect withholding amounts.
The IRS has issued a new statement that confirms they will be revisiting the form for 2019, although the changes will likely not be drastic. They received heavy pushback for this. Some say the form is overly complex, and leaves taxpayers too vulnerable to incorrect calculations. Overall, the demand was for more significant changes on the next draft.
The IRS responded – the new version of form W-4 will be ready in 2020. This is slower than many would like, and the IRS is advising that taxpayers take advantage of their Withholding Calculator, which does reflect changes under the new tax law.