WASHINGTON \u2014 The Internal Revenue Service today provided additional expanded\npenalty relief to taxpayers whose 2018 federal income tax withholding and\nestimated tax payments fell short of their total tax liability for the year.
\n
\nThe IRS is lowering to 80 percent the threshold required to qualify for this\nrelief. Under the relief originally announced Jan. 16, the threshold was 85\npercent. The usual percentage threshold is 90 percent to avoid a penalty.<\/p>\n\n\n\n
\u201cWe heard the concerns from taxpayers and others in the tax community, and\nwe made this adjustment in an effort to be responsive to a unique scenario this\nyear,\u201d said IRS Commissioner Chuck Rettig. \u201cThe expanded penalty waiver will\nhelp many taxpayers who didn\u2019t have enough tax withheld. We continue to urge\npeople to check their withholding again this year to make sure they are having\nthe right amount of tax withheld for 2019.\u201d<\/p>\n\n\n\n
This means that the IRS is now waiving the estimated tax penalty for any\ntaxpayer who paid at least 80 percent of their total tax liability during the\nyear through federal income tax withholding, quarterly estimated tax payments\nor a combination of the two.
\n
\nToday\u2019s revised waiver computation will be integrated into\ncommercially-available tax software and reflected in the forthcoming revision\nof the instructions for Form 2210, Underpayment of Estimated Tax by\nIndividuals, Estates, and Trusts.<\/p>\n\n\n\n
Taxpayers who have already filed for tax year 2018 but qualify for this expanded relief may claim a refund by filing Form 843, Claim for Refund and Request for Abatement and include the statement \u201c80% Waiver of estimated tax penalty\u201d on Line 7.\u00a0 This form cannot be filed electronically. Today\u2019s expanded relief will help many taxpayers who owe tax when they file, including taxpayers who did not 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. WASHINGTON \u2014 The Internal Revenue Service today 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. The IRS is lowering to 80 percent the threshold required to qualify for this relief. Under the relief originally announced […]<\/p>\n","protected":false},"author":1,"featured_media":3001,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2019-03-23T10:18:32Z","apple_news_api_id":"c268b4ac-5f41-49e8-9e68-299310d012c8","apple_news_api_modified_at":"2019-03-23T10:18:33Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/Awmi0rF9BSeieaCmTENASyA","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":["https:\/\/news-api.apple.com\/sections\/74d71b26-dfe2-3cf6-9b79-55911f8259f1"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-3000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/3000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/comments?post=3000"}],"version-history":[{"count":0,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/3000\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media\/3001"}],"wp:attachment":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media?parent=3000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/categories?post=3000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/tags?post=3000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
The IRS and partner groups conducted an extensive outreach and education campaign throughout 2018 to encourage taxpayers to do a \u201cPaycheck Checkup<\/a>\u201d to avoid a situation where some might have had too much or too little tax withheld when they file their tax returns. If a taxpayer did not submit a revised W-4 withholding form to their employer or increase their estimated tax payments, they may have not had enough tax withheld during the tax year.
<\/p>\n","protected":false},"excerpt":{"rendered":"