Treasury grants further relief on IRS withholding penalties
WASHINGTON (AP) — The Treasury Department is expanding again the relief it grants taxpayers who had too little in income taxes withheld from their paychecks in the first year of a sweeping tax overhaul.
Treasury says that taxpayers will be able to avoid penalties for paying too little in taxes as long as they paid at least 80 percent of what they owed the government.
That represents a reduction from the regular threshold to avoid penalties of paying 90 percent of what is owed. Treasury had earlier this year reduced the normal 90 percent threshold to 85 percent.
Treasury Secretary Steven Mnuchin says his department was making the move “to help those who attempted in good faith to meet their withholding obligations.”