The IRS provided new guidance regarding withholding from periodic payments for the 2020 calendar year.
Notice 2020-03 provides guidance for the 2020 calendar year regarding withholding from periodic payments for pensions, annuities and certain other deferred income under section 3405(a), including the rules for withholding from periodic payments when no withholding certificate is available.
The notice also informs taxpayers that the Treasury Department and the IRS are considering whether the 2020 default rate of withholding under section 3405(a) will continue to be appropriate for calendar years after 2020. The IRS will accept comments until Feb. 17, 2020.