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An IRS Form 1040, US Personal Income Tax Return, is posted on Thursday, April 5, 2018, in New York. (Photo: Jenny Kane, AP)
The Internal Revenue Service will cancel the penalties imposed on taxpayers who withheld their salary too little last year because they did not know how President Donald Trump's tax cuts could affect them, officials said Wednesday.
The Trump administration said it expects 90% of taxpayers to pay less income tax under the 2017 Law on Reduction and Reduction of Taxes. ;income tax. Most taxpayers have already benefited because employers are saving less money on their wages.
may have retained too little. Some taxpayers, especially those who already pay higher taxes at the state and local government level, may be liable for greater debt when they file their returns in April
because the law limited the possibility of canceling local taxes on state lands. The new threshold for a married couple who is filing jointly, for example, is $ 10,000.
The tax law also suspended personal exemptions – tax cuts for each additional household member – in favor of a larger standard deduction for all.
"We are aware that many changes have affected the citizens last year," said IRS Commissioner Chuck Rettig. "This penalty exemption will help taxpayers who inadvertently did not collect enough tax." We urge people to check their withholding again this year to make sure they have the withholding tax amount for 2019. "
Learn more : The IRS, Department of Agriculture Will Return Thousands of Returned Workers
Last month, the IRS warned of a "tax surprise" for taxpayers who did not pay enough taxes in 2018.
"Although most tax filers in 2018 are still waiting for refunds, the number of taxpayers and, in some cases, a number of taxpayers penalty, will probably be more important than in recent years, and many of them will probably be people who have always received refunds, "said the agency last month.
The announced waiver on Wednesday will be available to taxpayers who have withheld or made estimated payments representing at least 85% of their taxes owing. The IRS had previously waived penalties if taxpayers withheld at least 90% of the funds.
The IRS has recalled an additional 36,000 laid-off employees – more than half of its workforce – to facilitate the processing of tax returns and refunds for the tax season.
at his home in December, when President Donald Trump threatened to veto any spending bill not including $ 5 billion . 7 billion USD for a border wall. The partial shutdown of the government is now the longest in the history of the United States.
The Trump administration has promised that repayments will be done as usual. But other customer services, such as tax assistance by telephone or in detention centers throughout the country, will be limited.
Sen. Ron Wyden, the largest Democrat on the Senate Finance Committee, said Wednesday's announcement was "a step in the right direction," but said: "More data is needed. the IRS to determine if their action relieves a majority of taxpayers ". [19659019] "More Trump delays the closure of his government, more uncertainty reigns for families," Oregon's legislator said.
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