By failing to take congressional action on 2011 income taxes, the United States Treasury Department may have to take unprecedented action to prevent large tax increases in U.S. workers’ January 2011 paychecks. Generally, by mid-November, Treasury officials release the next year’s tax tables in order to provide payroll departments time to adjust their systems before paychecks are issued in January of the upcoming year.
Because Congress failed to take any action on 2011 income taxes prior to recessing for election season, nothing can be done to address the tax table issue until November 15, 2010 at the very earliest. If Treasury officials publish tables based on the expiring tax cuts, taxpayers from virtually every income level will likely see an increase in their withholding starting in January 2011.
The attorneys at Kohler & Smith Co., LPA are here for their clients during these chaotic times. End of year tax planning is a great way to make financial decisions that can benefit the taxpayer in both 2010 and 2011. Call one of our attorneys today to discuss tax planning and how it can benefit you and your family.