Amid Government Shutdown And Surprise Tax Bills
An end of year government shutdown has made the IRS more short-staffed than ever.
And the tax bill passed late in 2017 has created a flurry of confusion.
As a result, taxpayers are left in limbo.
At least one senator is attempting to help taxpayers with the expected surprise tax bills. According to accountingtoday.com, “Senator Ron Wyden, D-Ore., the top Democrat on the Senate Finance Committee, sent a letter Thursday to Internal Revenue Service Commissioner Charles Rettig asking the IRS to waive the penalties associated with surprise tax bills that he expects to hit millions of workers and families when they file their taxes this year, thanks to the changes in the Tax Cuts and Jobs Act.”
If you are in the process of buying a house, the government shutdown could wreak havoc if you are attempting to get income validation for your loan. Even though the House passed a bill to end the partial shutdown, there may still be repercussions in the form of delays that can affect homebuyers.
Hopefully the request for waiving penalties will be agreed to and provide at least a bit of clarity amid all the confusion.
As accountingtoday.com points out, “Wyden suggested the IRS waive any penalties on taxpayers who may have under-withheld through no fault of their own. “It seems unavoidable that millions of taxpayers who are expecting critical tax refunds will instead owe taxes when they start to fill out their returns in a few short weeks,” he warned. “Again, the Republican tax bill was rushed from start to finish, and passed over Democrats’ objections, so all we can do in the short-term is damage control. While the IRS cannot spare taxpayers who have been under-withheld from paying what is due, IRPAC recommends that IRS waive under-withholding penalties on taxpayers for this filing season so as not to add insult to injury. Such a one-time waiver would also spare both taxpayers and the dedicated staff of the IRS a modicum of grief this coming filing season and give Treasury a reprieve to get withholding and the W-4 form right for the 2020 filing season.”
If you are confused, you are not alone. If you need help sorting out previous or current tax problems, give us a call. Despite the confusion in Washington, we can help.