Making Work Pay Credit Will Most Likely Cause IRS Back Taxes

At the beginning of this month, the Treasury Inspector General released a report describing the negative effect that reduced withholding associated with the Making Work Pay Credit (MWPC) could cause. What the report mentioned is that 15+ million taxpayers could owe taxes when filing in 2009 and 2010 due to the fact that the withholding tables failed to consider certain factors. Moreover, many taxpayers will receive no refund or a reduced refund and some may end up with IRS penalties.