It may make good drama to play with the tax laws all the way up to the year-end but uncertainty as Congress fiddles means that millions of taxpayers don’t know how to plan for next year. Even worse? Their employers don’t know what to do either.
Payroll withholding for 2013 is already a mess and it’s still 2012. Employers assume that the payroll tax cuts will end (they will, right?) and that nothing new will be pulled out of Congress’, er, hat (*clearing throat*).
In response to the confusion, the IRS has issued the following statement:
We are aware that employers have questions with respect to 2013 withholding. Since Congress is still considering changes to the tax law, we continue to closely monitor the situation. We intend to issue guidance by the end of the year on appropriate withholding for 2013.
Okay, it’s not much but it’s all they’ve got. Stay tuned.
