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Waived penalty for those of you whose tax withholding and estimated tax payments fell short in 2018

January 24, 2019

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Waived penalty for those of you whose tax withholding and estimated tax payments fell short in 2018

January 24, 2019

 

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

 

The IRS is generally waiving the penalty for those of you who paid at least 85 percent of your 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 announced today will be integrated into commercially-available tax software and reflected in the forthcoming revision of Form 2210.