Federal Tax, Tax

IRS Proposed Regs For TCJA Federal Income Tax Withholding Changes

The IRS has issued proposed regulations to conform to the Tax Cuts and Jobs Act’s federal income tax withholding changes. The proposed regs are designed to accommodate the redesigned 2020 Form W-4, “Employee’s Withholding Certificate,” and related wage withholding tables. Among other things, the proposed regs provide rules on when employees must furnish a new Form W-4 for changed circumstances, update the rules for the “lock-in letter” program, and eliminate the combined income tax and FICA tax withholding tables. Taxpayers can rely on the proposed regs until they’re adopted as final. Contact Cg for more information. © 2020