On September 16, 2022, the IRS posted a draft 2023 Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions. Effective January 1, 2023, payors are to provide Form W-4R, or a qualifying substitute, to fulfill the withholding notice requirement for nonperiodic and eligible rollover distributions. Additional guidance recently posted by the IRS to address outstanding questions related to the requirements for substitute Forms W-4R provided that compliance with any 2023 version of Form W-4R along with the guidelines provided in the additional guidance, the 2022 Publication 15-A , and the 2022 Publication 15-T must be in use by the later of January 1, 2023, or 30 days after the IRS releases the final versions of the 2023 Form W-4R.
For the remainder of 2022, payors are compliant with withholding notice requirements if either the 2021 Form W-4P, Withholding Certificate for Pension or Annuity Payments (or, qualifying substitute), or the 2022 Form W-4R (or, qualifying substitute) is used to fulfill the withholding notice requirement.