Page 42 - Tax Information for Business
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Expanded penalty waiver
Figure Estimated
Tax
06 The IRS lowered to 80 percent the
threshold required for certain
taxpayers to qualify for estimated
tax penalty relief if their federal
income tax withholding and
estimated tax payments fell short of
their total tax liability in 2018. In
general, taxpayers must pay at
least 90 percent of their tax bill
during the year to avoid an
underpayment penalty when they
file.
Earlier this year, the IRS lowered
the underpayment threshold to 85
percent and recently lowered it to
80 percent for tax year 2018.
https://lentcpa.com 40
