IRS Prop. Reg.: Periodic Retirement, Annuity Payments Withholding (IRC §3405)

Proposed rules that would provide guidance on the federal income tax withholding on periodic payments under tax code Section 3405(a), as amended by the 2017 TCJA, issued by the IRS May 26. Section 3405(a)(4) was amended to eliminate the requirement that the payee be treated as a married individual claiming three withholding exemptions and to provide instead that, in the case of any periodic payment with respect to which a withholding certificate is not in effect, the amount withheld from the periodic payment will be “determined under rules prescribed by the Secretary.” The proposed regulations would provide ...