Barry G. Fowler, EA, leading expert in tax resolution issues and CEO of Taxation Solutions talks about how many people will be faced with a tax bill due to the Tax Cuts and Jobs Act of 2017 who may not have appropriately adjusted the amount of payments withheld from wages, Social Security or pension benefits..
Houston, TX – April 16, 2019 – Barry G. Fowler, CEO of Taxation Solutions, posted a new blog on the company website entitled “This Year Many Taxpayers Will Get Underpayment Penalty Relief.” Mr. Fowler explains who the rule and the relief will affect.
Fowler writes, “If you’ve never heard of it before, you’ll be hearing about it a lot this tax season: The underpayment penalty.” He explains, “This penalty applies when you don’t have enough tax payments withheld from your wages, Social Security or pension benefits.”
According to Fowler, “Most people are unfamiliar because typically they have more taxes taken out than too little.” He adds, “But this year everything is different with the 2017 Tax Cut and Jobs Act. This 2018 tax season is the first when people are getting hit with owing taxes when they are accustomed to getting a tax return. Much of that is a result of under payment of taxes through withholding.”
“If you owe less than $1,000 in taxes,” says Fowler, “you don’t have to worry about the underpayment penalty at all.” “However” he continues, “the rule is that you pay in at least 90% of the tax you owe or 100% of the tax you owed in the prior year. If your adjusted gross income is $150,000 or more you must pay in 110%. If those percentages are not met you owe an underpayment penalty.”
The entire blog can be read at https://www.taxationsolutions.net/this-year-many-taxpayers-will-get-underpayment-penalty-relief/
About Barry G. Fowler, EA
Barry G. Fowler founded Taxation Solutions out of a genuine concern for the IRS issues his clients face, many of whom are self-employed, contract employees, or entrepreneurs. For his contributions to his profession and expertise in tax resolution and financial planning, Fowler has been featured as one of America’s Trendsetters on CBS and Yahoo, and as a Premier Expert in Inc. Magazine. He has been instrumental in helping hundreds of people resolve complex tax issues with the IRS.
Fowler is licensed to represent taxpayers before the Internal Revenue Service, and is a longstanding member of several tax industry professional organizations: NAEA, NATP, TSEA, ASTPS.