As many of you should know, the IRS made some big changes to taxes this past year, and it has caused a bit of confusion when it comes to how much taxpayers should have been withholding from their paychecks. To compensate for this, the IRS has decided to provide a little relief to those who may not have adequately adjusted their estimated tax payments.
Normally, if a taxpayer pays less than 90% of their taxes by Jan. 15, then they suffer penalties. But if they pay at least 90%, then they are eligible for a penalty waiver. This year, the IRS has lowered this threshold to 85%, offering a little more leniency for those who were unable to properly adjust their withholding because of the tax changes.
If you have any questions about the recent changes, contact us at Stapley Accounting: your QuickBooks, payroll, and tax professionals.