Urgent Release: IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018
As the 2019 tax season rolls into full swing, good news just hit the press! Newly appointed IRS Commissioner Charles Rettig just announced that the IRS will waive more penalties for taxpayers who didn’t have enough withheld in 2018 to cover their tax liability. Because of the major changes in the tax law resulting from the Tax Cuts & Jobs Act passed in late 2017, there are a number of shake-up’s to tax brackets, etc. And while many taxpayers are expecting refunds this year, many are also expected to pay more but may not have adjusted their wage withholdings to account for the increase. Previously, no penalties were assessed if the taxpayer paid at least 90% of the liability. Commissioner Rettig just announced that for 2018 tax returns, any penalties associated with not having enough will be waived if the amount withheld is 85% of the total tax bill. Maybe not a huge adjustment, but it’s likely to make a difference for a sizable percentage of taxpayers.
Kudo’s to IRS Commissioner Rettig for the announcement, and for being on the job during the government shutdown!