Treasury Cuts Penalties For Taxpayers Who Got Confused About Withholding
Good news from the IRS seems to be rare but in 2019 the Internal Revenue Service is being more lenient on those taxpayers who got confused by the 2017 republican tax overhaul. Originally, those who paid less than 90% of their taxes were heavily penalized but this year the IRS has lowered it to 80%. Last year, 10-12 million taxpayers underpaid and faced penalties but hope remains for the 2019 tax season.
- Changes to the tax withholding requirements have led to a large number of confused taxpayers owing more than expected
- The 90% required payment threshold was lowered to 80% for the 2019 year to accommodate for the changes
- This could save 10-12 million taxpayers around $1.6 billion based on the 2018 year
- What are the possible consequences of the IRS not collecting the same amount of penalty fees as last year?
- Is this sufficient relief or do you believe more should be done to help those taxpayers who are confused? Why or why not?