Because of changes to the withholding tables, the IRS is generally waiving the penalty for any
taxpayer who paid at least 80% of their 2018 total tax liability during the year through federal
income tax withholding, quarterly estimated tax payments or a combination of the two. To
request the waiver, an individual must file a Form 2210, complete Part I, and check the waiver
box (Part II, Box A).

If the client already paid an estimated tax penalty based on the prior IRS notice allowing a waiver
if 85% of taxes had been prepaid, a refund can be claimed on Form 843. Include the statement
"80% waiver of estimated tax penalty" on Line 7.

Note. The usual percentage threshold to avoid a penalty is 90% of current year tax. The
penalty is also waived if withholding and estimated tax payments are at least 100%
(110% for some) of prior year tax.