For some taxpayers who miscalculated their withholding and/or estimated tax payments for 2018, the IRS is providing some relief. The new waiver provides that taxpayers will not be penalized under Section 6654 of the tax code if their withholding and estimated payments total at least 85% of their total 2018 tax liability. The other “safe harbors” to avoid an underpayment of estimated tax penalty still apply, in addition to this new waiver. The waiver is requested on Form 2210, to be filed with the 2018 income tax return. See IRS Notice 2019-11.
For additional information contact Carolyn A.W. Whitworth