AICPA asks IRS to simplify Form W-4

July 19, 2018

The AICPA is asking the IRS and the Treasury Department to simplify the draft version of Form W-4, the Employee’s Withholding Allowance Certificate.

Proposed changes were submitted to the IRS and Treasury in a letter written by the chair of the AICPA Tax Executive Committee, Annette Nellen, CPA, CGMA, Esq. The letter calls for a simple Form W-4 that would reduce administrative burden, protect employees’ privacy and avoid shifting additional onus onto employers.

Nellen recommended not requesting personal information on the form. Having spousal and family income information on the W-4 could seemingly lead to unfair and discriminatory employment practices. The letter also suggested the form not include nonwage income, itemized and other deductions, tax credits, and amounts of income from lower-paying jobs.

The draft 2019 form is more complicated than the 2018 form, and recommendations in the letter explain why the form should be simplified.

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