IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018

January 31, 2019

The Internal Revenue Service announced that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.

 

The IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty.

 

The waiver computation will be integrated into commercially-available tax software and reflected in the forthcoming revision of Form 2210 and instructions.

 

This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under the Tax Cuts and Jobs Act (TCJA), the far-reaching tax reform law enacted in December 2017.

 

“We realize there were many changes that affected people last year, and this penalty waiver will help taxpayers who inadvertently didn’t have enough tax withheld,” said IRS Commissioner Chuck Rettig. “We urge people to check their withholding again this year to make sure they are having the right amount of tax withheld for 2019.”

 

Tags:

Please reload

Featured Posts

Business Essentials During COVID-19 Pandemic

May 16, 2020

1/10
Please reload

Recent Posts

May 9, 2020

April 6, 2020

March 6, 2020

February 14, 2020

Please reload

Archive
Please reload

Search By Tags
Please reload

Anthony & Associates, CPAs  LLC

18-5 E Dundee Rd - Ste 310

Barrington, IL 60010

Phone: 847.842.1075

Fax: 847.387.5505

staff@aacpa.pro

  • Twitter Clean
  • White Google+ Icon
  • LinkedIn Clean
IL CPA SOCIETY

Anthony & Associates Certified Public Accountants in Barrington provide quality accounting, tax, payroll, and financial services to all areas of the Northwest Suburbs of Chicago, IL including: Arlington Hts, Schaumburg, Hoffman Estates, Elgin, Lake Zurich, Wauconda, Buffalo Grove, and Palatine, IIllinois.

© 2019 by Anthony & Associates, CPAs LLC | All Rights Reserved