16 Aralık 2012 Pazar

DAMNED IF THEY DO AND DAMNED IF THEY DON'T

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Itis December already and there is no progress in Washington on “taxmegeddon”.
If(or more likely when) BO and the idiots in Congress fail to act on the “fiscalcliff” issues before the end of 2012, what is the IRS going to do regardingwithholding tables for 2013?
Ifthe Service follows “current” law, federal income tax withholding will substantiallyincrease for many, if not most, employees, as the so-called “Bush tax cuts”will have expired on December 31, 2012, and everything will go back to pre-Bushrules.  If the idiots in Washingtoneventually pass retroactive extensions of the expiring breaks, the IRS willneed to revise the withholding tables, as will software companies, andwithholding will be totally FU-ed for an extended period of time, resulting inlower pay checks for almost all employees for a couple of months.
Ifthe Service assumes the idiots in Washington will eventually pass retroactiveextensions and does not change the federal withholding tables, keeping everythingthe same as 2012 or with some inflation adjustments, and the idiots inWashington do nothing, the IRS will need to revise the withholding tables, aswill software companies, and withholding will be totally FU-ed for an extendedperiod of time, resulting in many employees being under-withheld for the yearand owing tax when filing their 2013 returns.
Unfortunatelyit is we taxpayers, not the IRS or the idiots in Washington, who may be damnedif they do and damned if they don’t.
Wemust hope that whatever assumption the IRS uses to determine federal income taxwithholding effective January 1, 2013 turns out to be correct. 
TTFN 

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