After last years pushback from taxpayers and tax professionals, The IRS stated that they would revisit the form W-4, Employee’s Withholding Allowance Certificate. After the revisit They then issued a claim confirming that the Treasury Department and the IRS will now after having done their research, they will now incorporate everything that has been updated or deleted into a new version of the Form W-4, Employee’s Withholding Allowance Certificate, for 2020
The new tax rates, made significant changes to itemized deductions normally claimed on a Schedule A and they went ahead and eliminated personal exemptions. Which led to the conclusion that current withholding schemes were not adequate for all taxpayers, causing the General Accounting Office (GAO) to actually warn tax payers that unless they adjusted their withholding, they would owe taxes for that given year.
The concern and worry from business and investors eventually resulted in an well spread message from the IRS stating that penalty relief might be available for those who are not able to adjust as fast to the new change. In June of 2019-, the IRS even expanded the relief for those taxpayers making payments of at least 80% of the tax shown on the return for the 2018 taxable year
Here at Kravitz&Guerra Law we can help you with any tax related concerns or issues, our accountants and paralegals will take a look at your taxes history and will assist you on getting the best benefits for you, we don’t want you to lose money.
So what else changed ? Well, The draft form is a little bigger than the old form W-4: it’s a whole page (and yes, there are still additional worksheets that can be be several pages but are only filled if you apply for that category).Also now The form includes calculations for taxpayers with more than one job and how they can deal with additional income that might not have to be considered for tax purposes – items that tax professionals had expressed concern had not been adequately addressed after tax reform.
In conclusion, the IRS is doing what it can to help business and investor catch up to this new updated form which can cause delays and tax penalties, but that’s what we are here for, we can help you be up to date with all your taxes and accounts, just come in for a meeting (consultation fee will apply to your case as credit ) and don’t get behind on one of the most common business mistakes.