IRS provides relief for 2019 Form W-4 reporting

Tax Hot Topics newsletterThe IRS recently issued Notice 2018-92 to provide relief for certain filing requirements regarding income tax withholding on Form W-4 for the 2019 taxable year. It provides that the withholding rules in Notice 2018-14 that applied for taxable year 2018 will remain in effect for taxable year 2019, with certain modifications. Notice 2018-14 provided certain extension and relief provisions for Form W-4 reporting after the delayed release of the 2018 Form W-4 in February 2018.

Some of the notable provisions of Notice 2018-92 include the following:
  • Clarification on the definition of withholding allowance due to the changes made by the Tax Cuts and Jobs Act (TCJA)
  • The continuation until Apr. 30, 2019, of the temporary suspension under Notice 2018-14 of the requirement that employees must furnish their employers new Forms W-4 within 10 days for reductions in allowances resulting solely from the changes made by the TCJA
  • Treating employees who fail to furnish a Form W-4 as single for withholding purposes but entitled to the number of allowances in accordance with Publication 15 (Circular E), Employer’s Tax Guide, applicable for 2019
  • Treating the payee of periodic payments related to pensions, annuities and certain other deferred income who fails to furnish a Form W-4 as a married individual claiming three withholding allowances and applying that status to the 2019 withholding tables
The IRS further provides that individuals may use the online withholding calculator or Publication 505, Tax Withholding and Estimated Tax, to determine what entries to make on Form W-4 in lieu of the worksheets to Form W-4.

Jeff Martin
Washington National Tax Office
T +1 202 521 1526

Keith Mong
Managing Director
Washington National Tax Office
T +1 202 521 1554

James Sanchez
Senior Associate
Washington National Tax Office
T +1 202 861 4107

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