IRS Sets Withholding Tables as GOP Pledges Paycheck Increase

By Alexis Leondis
Bloomberg

The Internal Revenue Service released guidance for employers about how much tax they should withhold from workers’ paychecks in 2018 — and said it would soon offer an online calculator employees can use to make sure the amounts are correct.

Companies have been awaiting details from the IRS, following the sweeping tax overhaul passed at the end of last month that changes tax rates and brackets, increases the standard deduction and repeals personal exemptions. Employers should begin using the new withholding tables as soon as possible, but not later than Feb. 15, according to the IRS notice issued Thursday.

Republicans have promised that American wage earners will see bumps in their paychecks starting in February — after employers have made the withholding adjustments. House Majority Leader Kevin McCarthy of California has said taxpayers should “check their check.”

Read the full article at bloomberg.com.

How Green Card holders can get the most out of TFSAs and RRSPs

By Cleo Hamel
MoneySense

Q.  I am a  Green Card holder as well as a Canadian resident, and have two questions: No.1. Which are the best securities to invest inside my TFSA to be “friendly” from an Internal Revenue Service and Federal Treasury Board (IRS/FTB) tax point of view? And No. 2. Which are the best securities to invest in an RRSP—again, to be “friendly” from an IRS/FTB tax point of view? Thank you, Mirjana G.

Hi Mirjana. Regarding your RRSP account, you can own any investment you like inside of an RRSP without any issue while you live in Canada. You may even want to hold any dividend-paying U.S .stocks inside your RRSP instead of a non-registered account.

Generally, dividends paid by U.S. companies to Canadians are subject to a tax treaty withholding rate of 15%. The tax treaty waives the withholding on U.S. stocks owned inside of RRSP accounts and is not subject to the passive foreign investment rules (PFICs)…

Read the full article at moneysense.ca.

Victims Of IRS’s Tea Party Bias — And Taxpayers — Must See Lois Lerner’s Testimony, Lawyer Says

By Legal Newsline
FORBES

Lois Lerner, formerly of the Internal Revenue Service when it discriminated against applicants for tax exemptions based on their viewpoints, claims Americans have no right to read statements she made under oath about why she did it.

Lerner, the former director of the IRS’s Exempt Organizations Division, wants U. S. District Judge Michael Barrett to maintain under seal a deposition she gave in June for a civil suit that victims brought in 2013. Unsealing it would place her safety in jeopardy, she says.

Her former IRS colleague, Holly Paz, seeks the same after they targeted groups with “tea party” names and groups that didn’t like how the government was run…

Read the full article at Forbes.com.