New tax guidelines rely on workers to double-check their paychecks

[Peter1469]

New tax guidelines rely on workers to double-check their paychecks

This is going to go badly. Very badly. I suspect a very low compliance rate. Then when the IRS gets around to penalizing people who blew them off- they will kick up a massive backlash.

Millions of Americans will need to use a new Internal Revenue Service online calculator to ensure their new paychecks are accurate, Trump administration officials said Thursday as they issued guidelines for implementing the recently passed tax law.

The guidelines are necessary for businesses to calculate how much to withhold in taxes from employees’ paychecks beginning as soon as next month. The White House said Thursday that businesses should make these adjustments by Feb. 15, part of the administration’s push for millions of workers to see bigger paychecks as quickly as possible.


In rushing the process, the Treasury Department is asking companies to rely on outdated forms to help determine how much to withhold.

oops

A senior IRS official said Thursday that Americans with simple tax situations are likely to get accurate paychecks next month. But many Americans, including those who tend to itemize their tax returns, will need to use the online tool to ensure they are not dramatically overpaying or underpaying their taxes. The online calculator will not be available until sometime next month.

If they find their paychecks are inaccurate, it will be incumbent on the employees to tell their employers to make corrections.