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Officials See Trump Tax Paycheck Windfall but Urge Accuracy Check

Officials See Trump Tax Paycheck Windfall but Urge Accuracy Check

The IRS also said it was not yet ready to issue a new W-4 form.

The guidelines are necessary for businesses to calculate how much to withhold in taxes from employees' paychecks beginning as soon as next month.

In rushing the process, the Treasury Department is asking companies to rely on outdated forms to help determine how much to withhold.

"I want to make sure that consumers who are trading this understand the risks because I am concerned that consumers could get hurt", he said.

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

A backup withholding rate of 24 percent applies to non-employee compensation when individuals fail to provide proper tax identification information, the IRS said.

But said charges that the administration is juicing the numbers are "ridiculous".

That means employers will be using the new tables based on old forms from employees in many cases.

"The IRS appreciates the help from the payroll community working with us on these important changes", said Acting IRS Commissioner David Kautter. "We had to figure out how to fit this in this format".

In a news release by the Treasury Department, employers are encouraged to implement the new withholding tables expeditiously but should do so no later than February 15, 2018. Swiss accounts were infamous for their use by tax dodgers and money launderers, but the privacy protections have been loosened in recent years.

And roughly three-quarters of tax filers are overwithheld because they take too few allowances. A senior IRS official said he expected that level to fall just a bit next year to around 73 percent.

Earlier this week, Wyden and Rep. Richard Neal, the top Democrat on the House tax-writing committee, asked the Government Accountability Office to analyze the new IRS tables to see if they might lead to systematic underwithholding of federal taxes from paychecks. Ron Wyden, D-Ore., said in a statement. And that results in a refund when they file their tax returns.

Many Americans are likely to see changes and adjustments this year in their tax payments as the law goes into effect. Form W-4 and the revised calculator will reflect additional changes in the new law, such as changes in available itemized deductions, increases in the child tax credit, the new dependent credit and repeal of dependent exemptions.

The updated withholding information, posted today on IRS.gov, shows the new rates for employers to use during 2018.

The Republican tax bill that Trump signed into law in December lowered individual tax rates through 2025 and almost doubled the standard deduction that families can use to reduce taxable income.

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