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The Internal Revenue Service will waive penalties for taxpayers who withheld some of their wages last year because they were unsure how President Donald Trump's tax cuts would affect them, officials said Wednesday.
Trump administration said it is expected that 90 percent of taxpayers owe less income tax according to the 2017 Tax Reduction and Jobs Act. Most taxpayers have already seen the benefits as employers withhold less money from their pay slips.
But some could have kept too little. Some taxpayers – especially those who already pay higher state and local taxes – may end up due to more when they send their returns in April.
This is because the law limited the ability to write off state local taxes. For example, the new cutoff for a married couple filing together is [$19659007] $ 10,000.
Tax law also suspended personal exemptions – tax cuts for each additional member of the household – in favor of a larger standard deduction for everyone.
"We recognize that there were many changes that hit people last year," Commissioner Chuck Rettig said. "This sanction will help taxpayers who have not been properly taxed detained
We encourage people to check their detention again this year to ensure they have the right amount of tax withheld in 2019. "
Just last month, the IRS was aware of a" tax surprise "for taxpayers who did not pay sufficient taxes in 2018.
"Although most 2018 tax files are still expected to receive refunds, the tax owed figure, and in some cases a penalty, is likely to be greater than in recent years, and many of them are likely to be People who have always received refunds say the agency last month.
The withdrawal announced on Wednesday will be available to taxpayers who detained or made it lent payments totaling at least 85 percent of their fees due. The IRS has previously waived penalties if taxpayers withheld at least 90 percent.
The IRS has withdrawn 36,000 more furloughed employees – more than half of their workforce – to help treat tax season returns and reimbursements.
Tax workers were sent home in December when President Donald Trump threatened to veto any expense bill that did not include $ 5 . 7 billion for a border wall. The partial government termination is now the longest in US history.
Trump administration has promised that reimbursement will go as usual. But other customer services, such as Tax relief via telephone or in entry centers around the country will be limited.
Sen. Ron Wyden, the senior Democrat on the Senate Finance Committee, called the message "a step in the right direction" on Wednesday, but said "more IRS data is needed to determine if their action renounces a majority of taxpayers."  "The longer drum knocks out his government's interruption, the greater the uncertainty for families," said the Oregon lawyer.
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