Certain IRS payments get reduced. Specifically, some payments made by the IRS are getting a “sequestration reduction” of 5.9% for fiscal year 2020 (Oct. 1, 2019, through Sept. 30, 2020). Under sequestration, automatic, across-the-board spending cuts are made to deal with the government’s budget deficit. Items that are subject to sequestration include whistleblower award payments; refundable AMT credit for corporations; refund payments for certain small tax-exempt employers claiming the Small Business Health Care Tax Credit; and refunds related to some government bonds. The reduction is determined annually. This year’s reduction is down from 6.2% in 2019 and 6.6% in 2018. www.mjscpa.com/news/
