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IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018

Yesterday the IRS announced that it was 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 IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding (threshold to avoid a penalty is 90 percent).

The waiver computation announced would be integrated into commercially-available tax software and reflected in the forthcoming revision of Form 2210 and instructions.

Original Story at IRS website.