PAYROLL TAXES
Firms can correct most employment tax underreporting errors interest free, according to the IRS. There are some exceptions to this rule, such as cases where the employer fails to pay the additional FICA tax due when it files Form 941-X, or when it agrees on Form 2504 to changes IRS made on audit (Rev. Rul. 2009-39).
IRS will waive estimated tax penalties due to the Making Work Pay Credit...the 6.2% credit on earned income, capped at $400 for singles and $800 for couples. IRS changed its income tax withholding tables to approximate the value of the credit. But many filers will be under withheld because the drop in income tax withholding exceeds the amount of the credit they’re entitled to. This includes working couples and pensioners with no earned income whose tax withholding was calculated under the new tables. Details on the waiver are in the instructions for Form 2210.
Firms can correct most employment tax underreporting errors interest free, according to the IRS. There are some exceptions to this rule, such as cases where the employer fails to pay the additional FICA tax due when it files Form 941-X, or when it agrees on Form 2504 to changes IRS made on audit (Rev. Rul. 2009-39).
IRS will waive estimated tax penalties due to the Making Work Pay Credit...the 6.2% credit on earned income, capped at $400 for singles and $800 for couples. IRS changed its income tax withholding tables to approximate the value of the credit. But many filers will be under withheld because the drop in income tax withholding exceeds the amount of the credit they’re entitled to. This includes working couples and pensioners with no earned income whose tax withholding was calculated under the new tables. Details on the waiver are in the instructions for Form 2210.
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