IRS Urges Filing of New W-4s to Balance Tax Shift

The Internal Revenue Service today urged workers to file a new tax form as soon as possible so that the amount withheld from their paychecks can be adjusted to reflect the landmark tax overhaul.

Unless a new Form W-4 is filed, IRS Commissioner Lawrence B. Gibbs told reporters, millions of people who have been claiming large itemized deductions might find at the end of 1987 that their taxes had been under-withheld during the year, and they could face penalties.

The new W-4 is only slightly changed from earlier versions, but the accompanying instructions and work sheets that many employees will have to use are considerably more complicated.

The new tax law requires all workers to file a new form by next Oct. 1. Workers who fail to comply will have their tax withheld as if they had no dependents. In many cases, that would result in over-withholding.