New W-4, new IRS calculator
The new W-4 can now be downloaded at www.irs.gov, type "2-11 W-4" in the search box.
Problem: When employees ask you if they should submit a new W-4--e.g., their withholding allo0wances have changed or will change; they expect to owe more FIT than will be withheld; they expect to receive large refunds on their 2010 tax return--and you are uneasy about giving tax advice, what can you do?
Solution: Direct them to the new IRS Withholding Calculator. They simply go to the IRS Web site (see above), type "calculator," click Withholding Calculator. On a series os simple screens, they will be asked to check various boxes ("single," "filing jointly," etc.) and will then know whether they should submit a new W-4 and what to put on it.
"New W-4, new IRS Calculator." The General Ledger February 2011 Vol. 28. No. 2, Pg 6
Your Tax Team | 03/01/2011