Payroll Tax Moratorium and Checks on the Rich: US Tax Changes

The United States has adopted a number of tax changes. First of all, the payroll tax will not be levied on Americans if their wages do not exceed $ 100,000 per year. This is necessary to support citizens during the COVID-19 pandemic. Trump also promised that if he is re-elected in November, he will initiate consideration of the complete cancellation of the payroll tax. In 2019, the US state budget received $ 1.2 million from payroll tax.

Also,  there will be extended tax audits on wealthy taxpayers in the United States. The grace period caused by the COVID-19 pandemic will not be extended. In this regard, the first inspections of companies will begin in August-September. Special attention will be paid to the richest taxpayers.

IRS officials said they would consider the mandatory repatriation of foreign capital, which was not previously taxed. In addition, they will consider issues of compliance with restrictions, deduction of interest costs, timeliness of declaring assets that the wealthy taxpayers have abroad. For these purposes, a special group of experienced auditors (Global High Wealth Industry Group) was involved.

Law&Trust offers services to clients operating in the USA. We will tell you in detail about the latest changes in legislation and help you prepare for tax audits.