The AICPA’s Tax Executive Committee sent a letter to the IRS on Thursday, urging the Service to simplify the proposed draft 2019 Form W-4, Employee’s Withholding Allowance Certificate, to reduce administrative burdens by not requiring an annual Form W-4 calculation, protect employees’ privacy by omitting personal information from the form, and avoid shifting the onus onto employers to determine employees’ correct withholding . The letter, from Tax Executive Committee chair, Annette Nellen, said that the form should be simplified, so that it does not include nonwage income, itemized and other deductions, tax credits, and amounts of income from lower-paying jobs. Requesting this personal information requires employees to essentially calculate their tax liability, the letter noted. It also is potentially an invasion of privacy because the employer will see the employee’s personal information. The AICPA recommends these alternatives to the Form W-4: Allow the...
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