Excerpt from New Irs Form W-4 (Withholding of Federal Income Tax): Scheduled for a Hearing Before the Subcommittee on Private Retirement Plans and Oversight of the Internal Revenue Service of the Senate Committee on Finance on February 6, 1987 Present law, which was not amended by the Tax Reform Act of 1986, requires the Treasury to prescribe tables and computational procedures for determining the appropriate amount of Federal income tax to be deducted and withheld by employers from wages paid to their employees (code sec. Form w-4 is the form that enables that calculation to be performed. Form w-4 is completed by the employee, who furnishes it to the employer. The employer uses this form to determine the proper level of income tax withholding. The employer does this by using tables issued by the Treasury that specify the proper amount of income tax withholding, considering the employee's wage level and number of withholding allowances claimed. The employee completes Form w-4 by determining the proper number of withholding allowances (or exemptions) to which he or she is entitled. Withholding allowances may be claimed for the employee and any dependents (code sec 3402(f)) and for itemized deductions and estimated tax credits (code sec. Other items prescribed in regulations may also be claimed. The regulations issued prior to the enactment of the Tax Reform Act of 1986 generally permitted most adjustments to income, itemized deductions, tax credits, net losses from businesses and farming, and income averaging, to be considered in computing withholding allowances (see Treas. Reg. Sec. 31.3402(m) - l). Under prior law, an employee's Form w-4 generally remained in effect until the employee revoked it and filed a new one. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.