Many Taxpayers Will Owe IRS in
April Due to Underwithholding The Government Accountability Office, or GAO, recently reported that many American employers aren't withholding enough from employees paychecks under the new tax law. Treasury Department simulations indicate that 21 percent of taxpayers will owe at tax time because of underwithholding. Millions of Americans
started receiving bigger paychecks
earlier this year, as employers anticipated
lower income taxes under the new law. A middle-income household should average a $930 tax cut this year, according to the nonpartisan Tax Policy Center. The report conducted by the Government Accountability Office was requested by senior Senate and House Democrats in January. The IRS has previously warned taxpayers
that they should review and update their withholding under the new law,
which the GAO acknowledges. The Treasury Department and IRS's roles and responsibilities, as far as updating the tax withholding tables, aren't concretely defined. The GAO recommends that the two departments
work together to sort it out.