Tax penalty relief - The Tax Cuts and Jobs Act has impacted both businesses and individual taxpayers

#taxpenaltyrelief #tcja #irstips

Tax Relief for underpayment

Tax penalty relief - The Tax Cuts and Jobs Act has impacted both businesses and individual taxpayers. The estimated tax penalty can assist taxpayers who have paid in 85 percent of their total tax during 2018 through federal income tax withholding (w-2), quarterly estimated tax payments (self-employed) or a combination of both. The tax penalty is usually avoided if you pay at least 90 percent of the total tax liability.

Check with your tax professional to ensure they are aware of this tax penalty relief and if the software they are using to prepare your return will adjust for the revised penalty. You can also use form 2210 underpayment of estimated tax by individuals, estates and trusts.

For those of you who are a fisherman/farmer the IRS will waive the estimated tax penalty for those who have filed their returns and have paid by April 15th. You can use form 2210-F to request.

A great way to pay the taxes you owe or pay in additional tax is using the IRS’s Pay As You Go. By paying in additional taxes, you can avoid having a large tax bill at the end of the year.

Keep in mind we are only a few months away if you have filed a personal tax extension and you have taxes due. The last day you can file and pay is October 15th, 2019.