IRS PROVIDES PENALTY IRS PROVIDES PENALTY RELIEF FOR UNDERPAYMENT FOR 2018 INDIVIDUAL TAXES

In an Information Release and Notice, IRS has announced that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. The relief is prompted by changes in the Tax Cuts and Jobs Act (TCJA). This waiver covers taxpayers whose total withholding and estimated tax payments are equal to or greater than 85% of their taxes owed.