Penalty waiver expanded again

March 22, 2019

The IRS provided additional expanded penalty relief to taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total liability for the year.

The IRS lowered the threshold from 85 to 80 percent. Usually, the threshold is 90 percent to avoid a penalty.
Details regarding the guidance changes are included in Notice 2019-25.

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