IRS provides more guidance on Forms W-4P and W-4R

The IRS recently released additional guidance addressing substitute and telephonic submissions of Forms W-4P and W-4R for 2022 and 2023. These forms are used by qualified retirement plan participants, IRA account holders, and distribution recipients from other retirement arrangements to request withholding on certain payments from these arrangements other than in accordance with the applicable default withholding rules. The default withholding rules typically depend on whether the distributions are periodic, nonperiodic or eligible-rollover distributions.

Although the final redesigned Form W-4P and new Form W-4R are available for use in 2022, the IRS previously postponed the requirement to begin using the forms until Jan. 1, 2023 (or, if later, 30 days after the final versions of the 2023 forms are released by the IRS). The IRS noted that the applicable form instructions and publications will be updated with this information for 2023.

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