Drake Software blog for tax pros, covering tax, IRS news, and more

Tax Bills are in the Mail

Tax Bills are in the Mail

Some of your clients may have found a tax bill when they opened their mailbox this morning. That’s because the Internal Revenue Service began sending CP14 and CP501 Notices to taxpayers who still owe tax for TY 2018.…

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IRS Lowers Withholding Penalty Threshold Again

IRS Lowers Withholding Penalty Threshold Again

In January, the IRS announced it was lowering the threshold for applying the estimated tax penalty from 90 percent to 85 percent. This change was designed to shield taxpayers who were already getting an unexpected tax bill due to tax reform from also owing a penalty. Last Friday, the IRS said they were lowering the threshold once again to provide penalty relief to even more taxpayers.…

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