IRS Begins Process of Administering New Law
On Dec. 22, President Trump signed into law H.R. 1, the Tax Cuts and Jobs Act. Most of the tax reform law’s provisions went into effect on Jan. 1, creating a challenge for the Internal Revenue Service (IRS) and the Department of the Treasury to administer the changes to the tax code within the next 12 months.
In the immediate future, the IRS announced that it expects to issue guidance in January on how much taxes employers should withhold, which will allow payroll processors and human resources departments to begin implementing changes in February. The IRS also announced that the guidance will be designed to work with existing W-4 withholding forms, and that additional action by employees is not expected.
AGC will continue to monitor the law’s implementation to ensure that new tax provisions utilized by construction firms are enforced correctly and favorably.
For more information contact Matthew Turkstra at firstname.lastname@example.org or (202) 547-4733.