IRS watchdog urges agency to provide more underpayment penalty relief

The IRS’s in-house watchdog on Thursday recommended that the agency provide more penalty relief for people who did not have enough money withheld from their paychecks throughout the year, as people file their taxes for the first time under President Trump’s tax law.

“I think the IRS should do whatever is within its administrative ability to provide relief,” National Taxpayer Advocate Nina Olson said at a hearing held by a House Ways and Means Committee subpanel.

“If Congress could take some action on that … that would be excellent,” she added. “I just think that would calm everybody down.”