WASHINGTON — The new W-4 tax-withholding form is so complex that it ought to be withdrawn and simplified, the chairman of the Senate Finance Committee said today.
The chairman, Sen. Lloyd Bentsen (D-Tex.), said in a letter to Lawrence Gibbs, commissioner of the Internal Revenue Service, "I have heard from a number of concerned individuals and businesses about the complexity of the new W-4. . . . Upon reviewing the form, I must echo these concerns."
Bentsen also wrote, "Although I recognize that the IRS was working under a mandate from Congress to devise a more accurate form, our goals will not be realized if workers are unable to decipher the form because of its complexity. . . .
'Short' Form Suggested
"Please review the situation and let me know if the service could devise a simpler process, such as making the new W-4 form optional or allowing taxpayers to choose a 'short' form instead," Bentsen urged.