The Internal Revenue Service has announced that it is waiving the estimated tax penalty for certain taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.
The IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during 2018. The usual percentage threshold is 90 percent to avoid a penalty.
The relief is to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect the changes under the Tax Cuts and Jobs Act (TCJA).
For additional information, please visit the IRS website.
Have a wonderful week!
Your Global Mobility Tax Team