IRS Updates 2013 Withholding Tables Following Approval of H.R. 8

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IRS issues a news release (IR-2013-1) with updated withholding guidance for 2013, along with an updated Notice 1036 on the 2013 percentage method withholding tables. Although the withholding allowance amounts are the same as shown in the information IRS released Dec. 31, the updated release shows seven tax brackets (10, 15, 25, 28, 33, 35, and 39.6) in the percentage method tables. There were five tax brackets in the information released Dec. 31. The number of income tax brackets is changed by enactment of H.R. 8, which President Obama signs.