IRS Announces Underpayment Penalty Relief

The Internal Revenue Service announced yesterday in Notice 2019-11 that it will be providing relief from the assessment of underpayment of estimated tax penalties for individuals under IRC 6654.  In the notice, the Internal Revenue Service has stated due to the effects of the Tax Cuts and Jobs Act passed in December 2017, individual taxpayers can request waiver of penalties for underpayment of tax if they have paid in at least 85% of the tax liability shown on their 2018 tax return.  Individual taxpayers are generally subject to an underpayment penalty if they fail to pay in at least 100% (110% for certain higher income taxpayers) of their prior year tax liability or 90% of their current year tax liability as either estimated tax payments or wage withholdings.

A copy of the notice and steps taxpayers will need to take to claim the waiver can be found in the link below.