[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR31.3402(f)(5)-1]

[Page 227-228]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY--
                               (Continued)
 
PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE--Table of Contents
 
              Subpart E--Collection of Income Tax at Source
 
Sec. 31.3402(f)(5)-1  Form and contents of withholding exemption certificates.

    (a) Form W-4. Form W-4 is the form prescribed for the withholding 
exemption certificate required to be filed under section 3402(f)(2). A 
withholding exemption certificate shall be prepared in accordance with 
the instructions and regulations applicable thereto, and shall set forth 
fully and clearly the data therein called for. A withholding exemption 
certificate that does not set forth fully and clearly the data therein 
called for is an invalid withholding exemption certificate under 
Sec. 31.3402(f)(2)-1(e) (relating to withhholding exemption 
certificates). Blank copies of paper Forms W-4 will be supplied to 
employers upon request to the Internal Revenue Service. In lieu of the 
prescribed form, employers may prepare and use a form the provisions of 
which are identical with those of the prescribed form, but only if 
employers also provide employees with all the tables and instructions 
contained in the Form W-4 in effect at that time and only if employers 
comply with all revenue procedures relating to substitute forms in 
effect at that time.
    (b) Invalid Form W-4. A Form W-4 does not meet the requirements of 
section 3402(f)(5) or this section and is invalid if it contains an 
alteration or unauthorized addition. For purposes of Sec. 31.3402(f)(2)-
1(e) and this paragraph--
    (1) An alteration of a withholding exemption certificate is any 
deletion of the language of the jurat or other similar provision of such 
certificate by which the employee certifies or affirms the correctness 
of the completed certificate, or any material defacing of such 
certificate;
    (2) An unauthorized addition to a withholding exemption certificate 
is any writing on such certificate other than the entries requested 
(e.g., name, address, and number of exemptions claimed).
    (c) Electronic Form W-4--(1) In general. An employer may establish a 
system for its employees to file withholding exemption certificates 
electronically.
    (2) Requirements--(i) In general. The electronic system must ensure 
that the information received is the information sent, and must document 
all occasions of employee access that result in the filing of a Form W-
4. In addition, the design and operation of the electronic system, 
including access procedures, must make it reasonably certain that the 
person accessing the system and filing the Form W-4 is the employee 
identified in the form.
    (ii) Same information as paper Form W-4. The electronic filing must 
provide the employer with exactly the same information as the paper Form 
W-4.
    (iii) Jurat and signature requirements. The electronic filing must 
be signed by the employee under penalties of perjury.
    (A) Jurat. The jurat (perjury statement) must contain the language 
that appears on the paper Form W-4. The electronic program must inform 
the employee that he or she must make the declaration contained in the 
jurat and that the declaration is made by signing the Form W-4. The 
instructions and the language of the jurat must immediately follow the 
employee's income tax withholding selections and immediately precede the 
employee's electronic signature.
    (B) Electronic signature. The electronic signature must identify the 
employee filing the electronic Form W-4 and authenticate and verify the 
filing. For this purpose, the terms ``authenticate'' and ``verify'' have 
the same meanings as they do when applied to a written signature on a 
paper Form W-4. An electronic signature can be in any form that 
satisfies the foregoing requirements. The electronic signature must be 
the final entry in the employee's Form W-4 submission.
    (iv) Copies of electronic Forms W-4. Upon request by the Internal 
Revenue Service, the employer must supply a hardcopy of the electronic 
Form W-4 and a statement that, to the best of the employer's knowledge, 
the electronic

[[Page 228]]

Form W-4 was filed by the named employee. The hardcopy of the electronic 
Form W-4 must provide exactly the same information as, but need not be a 
facsimile of, the paper Form W-4.
    (3) Effective date--(i) In general. This paragraph applies to all 
withholding exemption certificates filed electronically by employees on 
or after January 2, 1997.
    (ii) Special rule for certain Forms W-4. In the case of an 
electronic system that precludes the filing of Forms W-4 required on 
commencement of employment and Forms W-4 claiming more than 10 
withholding exemptions or exemption from withholding, the requirements 
of paragraph (c)(2)(iii) of this section will be treated as satisfied if 
the Form W-4 is filed electronically before January 1, 1999.

[T.D. 7423, 41 FR 26217, June 25, 1976, as amended by T.D. 7915, 48 FR 
44074, Sept. 27, 1983; T.D. 8706, 62 FR 24, Jan. 2, 1997]