Just received a notice from the IRS:
1. IRS Expands Penalty Relief for Taxpayers Whose Payments Fell Short in 2018
The IRS provided additional expanded penalty relief to taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year by lowering to 80 percent the threshold required to qualify for this relief. The IRS is now waiving the estimated tax penalty for any taxpayer who paid at least 80 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 revised waiver computation will be integrated into commercially-available tax software and reflected in the forthcoming revision of the instructions for Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. The IRS urges everyone to take a Paycheck Checkup and review their withholding for 2019. Additionally, the updated Withholding Calculator is now available on IRS.gov.
1. IRS Expands Penalty Relief for Taxpayers Whose Payments Fell Short in 2018
The IRS provided additional expanded penalty relief to taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year by lowering to 80 percent the threshold required to qualify for this relief. The IRS is now waiving the estimated tax penalty for any taxpayer who paid at least 80 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 revised waiver computation will be integrated into commercially-available tax software and reflected in the forthcoming revision of the instructions for Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. The IRS urges everyone to take a Paycheck Checkup and review their withholding for 2019. Additionally, the updated Withholding Calculator is now available on IRS.gov.
