The Ohio Society of CPAs this week sent a letter to Ohio’s Congressional Delegation urging them to provide relief to taxpayers in the wake of tax reform and the recent federal government shutdown.
The IRS adjusted its withholding tables as part of its implementation of the Tax Cuts and Jobs Act. However, the tables did not account for factors such as the elimination of personal and dependency exemptions or reduced itemized deductions. As a result, many taxpayers have been unable to accurately calculate their tax liability for 2018 and might have inadvertently under-withheld their taxes.
OSCPA Tax Policy Director Greg Saul, Esq., CAE, wrote that Congress needs to act to ensure taxpayers are served fairly.
“While the IRS has already stated it will waive the underpayment penalty for individuals who paid at least 85% of taxes due by Jan. 15, 2019, we believe more should be done,” Saul wrote, “particularly in view of the federal government shutdown that made it difficult for taxpayers to secure timely guidance.”
OSCPA’s efforts were added to those of the AICPA, which earlier this week sent the IRS and the Department of the Treasury a letter requesting five additional recommendations beyond what has already occurred:
“On behalf of The Ohio Society of CPAs’ 26,000 members, we hope you, too, will encourage the IRS to support this pro-taxpayer action,” Saul wrote.