Mnuchin sees $1 trillion revenue growth from United States tax overhaul

Jan 14, 2018, 00:10
Mnuchin sees $1 trillion revenue growth from United States tax overhaul

Mnuchin added that his department had formed a working group to address its concerns about cryptocurrency usage by nefarious individuals and organizations.

The Internal Revenue Service today released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month.

The money going into the pockets of Americans is a direct result of the tax cuts promised by President Trump.

Taking the first concrete step toward the Republican tax plan's promise of fatter paychecks for millions, the Trump administration on Thursday issued new guidelines for how much employers should withhold as taxes from workers' pay.

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"While these withholding tables are created to work with Forms W-4 that employees have already provided to employers, it is possible that taxpayers may need to make changes to their Forms W-4", Jennifer Breen, a partner in Morgan, Lewis & Bockius LLP's Washington office, said in an email.

"The IRS appreciates the help from the payroll community working with us on these important changes", said Acting IRS Commissioner David Kautter.

The United States Secretary of the Treasury Steven Mnuchin has stated that his department's top priority in regards to cryptocurrencies is making sure they are kept out of the hands of criminals. "We've constructed the tables so that most people should be accurately withheld if they leave their W-4 in place", a senior IRS official noted.

The IRS also plans to to help individual taxpayers determine the correct amount of withholding by the end of February.

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To ensure an accurate calculation, taxpayers will have to enter their personal financial information into a calculator expected to be unveiled next month on the website IRS.gov. However, the situation has changed in recent times, with Swiss authorities showing greater willingness to cooperate with the IRS.

The roles of Treasury and the IRS aren't perfectly aligned all the time - nor should they be. Ron Wyden (D-Ore.) and Rep. Richard E. Neal (D-Mass.) said in a January 8 letter to U.S. Comptroller General Gene L. Dodaro.

Based on the new tables, some employees could be in danger of tax underwithholding if they claim a significant number of withholding allowances, O'Toole told Bloomberg Tax. They should continue to use the 2017 withholding tables until implementing the 2018 withholding tables.

He said new guidelines would provide an accurate picture for many.

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