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IRS Waives Some Penalties for Underpayment of 2018 Tax

August 30, 2019 3:53 PM | Anonymous member (Administrator)

The Internal Revenue Service is automatically waiving the estimated tax penalty for some taxpayers who have already filed their 2018 tax returns and did not claim a penalty waiver.

The IRS earlier this year lowered the usual penalty threshold of payment of 90% of the tax owed on the return, to 80%, to help taxpayers who, under the new tax laws, came up short of required estimated tax payments for 2018.

If you filed your tax return before mid-August and paid an underpayment penalty, you may qualify for a penalty waiver.  Over the next few weeks, the IRS will be mailing out notices granting this relief to affected taxpayer.  Taxpayers who qualify for relief under the lower 80% threshold will receive refunds of the penalty and any interest paid when they filed their return.

For details, see the IRS news release.

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