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Newspaper
Garden City Telegram
Location
Garden City, Kansas, United States of America
Date
Jan 23, 2001
Page
6
IRS introduces fully electronic filing with a five digit personal PIN system. The PIN chosen by filers, plus their Social Security number birth date and 1999 tax figures, authenticate the electronic signature for 2000 returns. Joint filers each provide their own PIN and the IRS verifies remaining data to confirm identity.
Tax withholding from paychecks remains the primary way the government collects income taxes. The article notes most taxes are paid through withholding, with self employment and other income also due on a pay as you go basis. It discusses year end adjustments, penalties for underpayment, and the irony of large tax refunds. It cites 1998 refunds totaling over 100 billion dollars and average refunds around 1300 dollars. It warns two earner couples face underpayment penalties and explains the IRS may issue penalty notices based on apparent noncompliance.
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