Waived Penalty – Did You Know?

In order to help taxpayers with the changes under the Tax Cuts and Jobs Act (TCJA), the IRS has announced that it is waiving the estimated tax penalty for many taxpayers who fell short of their taxes owed through income tax withholding and estimated tax payments for the 2018 tax year.

They are generally waiving the penalty for any taxpayers who paid at least 85% of their total tax liability, where the usual percentage threshold is 90% to avoid a penalty.