Many American taxpayers havent caught up with the latest changes in the redesigned W-4, which the IRS released a year ago, putting them at risk for an unexpected tax bill next April. In fact, nearly two in five (37 percent) American taxpayers admit they arent even familiar with the W-4, including 11 percent who say theyve never heard of it. Thats according to new research conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA).
There have been a number of changes to withholdings over the past 3 years and weve found that many Americans havent been making adjustments accordingly. Inaccurate withholding can lead to an unpleasant surprise come Tax Day, said Gregory J. Anton, CPA, CGMA, chairman of the AICPAs National CPA Financial Literacy Commission. And with many individuals in a financially precarious position, its more important than ever to understand how withholding impacts your