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AICPA: Simplify Draft W-4

Annette Nellen, AICPAThe American Institute of CPAs is urging the Internal Revenue Service and department of Treasury simply its draft Form W-4 for 2019. The AICPA said the form should not request nonwage income, itemized and other deductions, tax credit and total pay of all lower-paying job.

In a letter to the agencies, Annette Nellen, CPA, CGMA, Esq., chair of the AICPA Tax Executive Committee described the draft as “over complicated”, requiring taxpayers to calculate their tax lability.

“Taxpayers need a Form W-4 that is easy to understand and simple to complete, thereby reducing compliance burdens and minimizing the risk of tax underpayment and penalties,” Nellen wrote. 

Many employees are likely apprehensive providing employers with spousal and family income information could lead to unfair and discriminatory employment practices Employers should also be provided with a straightforward method to determine their employees’ withholdings.

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