Democratic Letter: IRS Must Give Small Businesses and Individuals the Same Leniency Given to Multinational Corporations

Representative Judy Chu and members of the Ways and Means Committee sent a letter to the IRS in regards to the inequity of recently implemented tax law

SouthPasadenan.com

Washington D.C. – Today, Rep. Judy Chu (CA-27) and 12 Democratic members of the Ways and Means Committee sent a letter to Acting Internal Revenue Service (IRS) Commissioner David Kautter urging the IRS to give individuals and small businesses the same leniency, grace periods, and penalty waivers given to multinational corporations as the recently passed tax law is implemented. According to a June 4 press release, the IRS will waive certain late-payment penalties for multinational corporations arising from uncertainty and changes around the tax law. However, no such offer has been extended to small businesses or individual taxpayers who may be surprised to find themselves under withheld due to tax law changes. Rep. Chu released the following statement:

“Because Republicans rushed their tax bill through the legislative process, the new law is riddled with complications. This has resulted in many companies struggling with compliance, forcing the IRS to clarify the complexities that should have been worked out before the law was passed. Instead of creating growth in the middle class, the tax law has created confusion and uncertainty. But individual taxpayers and small businesses are also struggling to calculate their estimated tax payments due to this confusion. For example, the hasty elimination of personal exemptions and capping of the state and local tax deduction as well as the uncertainty surrounding the Section 199A deduction mean that individuals and small businesses could also be underpaying their taxes and subject to a penalty. We believe that individuals and small businesses are no less deserving of reasonable leniency than a multinational corporation, and call on the IRS to treat them as such.”

The letter is signed by Ways and Means Ranking Member Richard Neal (MA-01) and Representatives Sander M. Levin (MI-09), John Lewis (GA-05), Lloyd Doggett (TX-35), Mike Thompson (CA-05), John B. Larson (CT-01), Earl Blumenauer (OR-03), Bill Pascrell, Jr. (NJ-09), Danny K. Davis (IL-07), Linda T. Sanchez (CA-38), Brian Higgins (NY-26), and Terri A. Sewell (AL-07). And can be found online here.

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