The U.S. Treasury Department and IRS this afternoon released for publication in the Federal Register a notice of proposed rulemaking (REG-132741-17) as guidance for employers concerning the amount of federal income tax to withhold from employee wages.
The proposed regulations [PDF 373 KB] (29 pages as published in the Federal Register) implement changes made by the 2017 U.S. tax law (Pub. L. No. 115-97)—the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA).
Accordingly, the regulations proposed changes to the existing regulations under Code sections 3401 and 3402, and in general would update those regulations to conform to the changes made by the TCJA and other legislation enacted since the regulations were last revised.
The preamble to the proposed regulations further states that these regulations are designed to accommodate the redesigned 2020 Form W-4, Employee’s Withholding Certificate, and related wage withholding tables and computational procedures established by the IRS and reflected in Publication 15-T, Federal Income Tax Withholding Methods.
According to a related IRS release—IR-2020-28—the proposed regulations do not require employees to furnish a new Form W-4 solely because of the redesigned Form W-4. The IRS release further explains:
The proposed regulations were published in the Federal Register on February 13, 2020. Comments and requests for a public hearing are due by April 13, 2020.
The purpose of this report is to provide text of the proposed regulations.
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