In December 2017, The Tax Cuts and Jobs Act was passed and has made sweeping changes to income taxes. In February 2018, the IRS changed the tax withholding tables to reflect the new tax changes. The IRS is encouraging all taxpayers to check the withholding on their paychecks to determine if the correct amount of tax is being withheld.
We are concerned that withholding amounts under the new tax withholding tables will not withhold an adequate amount of tax. On withholding checkups we have performed for clients, the amount of tax withheld has been less than expected. In the past, you may have anticipated and received a certain refund amount. The changes to the 2018 tax withholding tables may affect this negatively.
Attached to this post are various communications from the IRS encouraging taxpayers to check their tax withholding under the new tax tables. These communications give taxpayers options for checking the withholding themselves. If you would prefer, Seaver & Forck can check your current tax withholding and determine whether the withholding is adequate or not.
If you would like us to check on your withholdings, please provide a copy of your most recent year-to-date paycheck data. We will check the withholding and inform you of any changes needing to be made.
Seaver & Forck, CPAs
Click here to access the IRS communication regarding mid-year "paycheck checkups":