Round up of tax changes going into effect for 2019.
While there are some changes that are more technical than I want to post here, there are some easier to understand changes:
4Higher withholding for foreigners: The Foreign Account Tax Compliance Act (FATCA), generally now requires a withholding agent to withhold 30% on certain payments to foreign financial institutions and persons that do not meet certain reporting requirements. It even applies to foreign persons (not living as US residents) who receive interest from banks. Thus, if you know any non citizens who are not residents of the US and are earning money from US sources, they could be subject to more withholding.
5Many tax exempt organizations freed from disclosing donors: Under the recent Tax Cut and Jobs Act, many tax-exempt organizations were required to file annual returns showing the donor, the amount of their contributions and addresses of the donor. However, Congress left a discretionary exception from the annual filing requirements where IRS may relieve any organization otherwise required to file if it deems to be not necessary to the efficient administration of the Internal Revenue Laws. Thus, if you are running a small tax exempt organization, you may be able to get IRS to give you a waiver from having to file these onerous forms.
6Gas prices should drop in 2019. There was a 9 cent per barrel excise tax called the oil spill liability that terminates in 2019. This tax only applied to petroleum products.
That ends this two-part series on specific tax changes for 2019 (Part 1 is here.). Obviously, there will be some number changes such as increasing the standard deduction from $12,000 per person $12,200 for single people and $24,400 for a couple.
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