The IRS plans to issue an “early release” draft of the 2020 Form W-4, Employee’s Withholding Allowance Certificate, for public comment by May 31, said Scott Mezistrano, IRS Industry Stakeholder Engagement and Strategy, on the March 7 payroll industry call.
The IRS will welcome comments on the first draft and plans to issue a second draft this summer, followed by the final version later in the year, Mezistrano said.
Expect Major Changes With the 2020 Form W-4
The IRS expects the 2020 Form W-4 to more accurately reflect changes made by the Tax Cuts and Jobs Act (TCJA; Pub. L. 115-97). The TCJA, which went into effect on January 1, 2018, significantly altered the federal tax system, including removing personal exemptions.
The IRS initially planned to revise the 2019 Form W-4 and released a draft version of the form that contained considerable changes from the 2018 form. However, following feedback from the payroll and tax communities, the IRS announced that it would delay those changes until the 2020 version of the form.
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