IRS pushes back major W-4 changes until 2020
Washington, D.C. — The Treasury Department said the Internal Revenue Service would push back implementation of a redesigned Form W-4 to tax year 2020, allowing the agency to keep working on a new approach to the employee withholding form.
The IRS released a draft version of a new Form W-4, “Employee’s Withholding Allowance Certificate,” earlier this year in the wake of the Tax Cuts and Jobs Act, but it received heavy criticism from groups like the American Institute of CPAS and the National Association of Enrolled Agents, which said that it raised privacy concerns, created a substantial risk of underwithholding, and would require taxpayers to forecast a number of tax-related items that are traditionally difficult to predict.
In June, the IRS released a draft version of a redesigned form for public comment and received many suggestions for improvements, which the agency is working to incorporate in the form to be released for tax year 2020. For tax year 2019, the IRS will instead release an update to the Form W-4 that’s similar to the 2018 version currently in use. That 2019 form will be released according to the usual practice for annual updates.
Taxpayers get a break on employee moving expenses
Washington, D.C. — The IRS is allowing people to continue to deduct employer payments or reimbursements for employee moving expenses, as long as they happened before this year, although the Tax Cuts and Jobs Act will change that for this year and going forward.
The IRS said that employer payments or reimbursements in 2018 for employees’ moving expenses that were incurred prior to 2018 can be excluded from an employee’s wages for income and employment tax purposes.