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.

 

 

 

Contact:

 
 
Tax professional standards statement

This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.

 

More tax hot topics