CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

Summer Sale – Grab discounts on some of our hottest conference destinations, credit packages & Tax Updates

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.

Recent Stories

Next Up...

The IRS is replacing First Time Abate with Automatic Exemption from Penalty (AEP), applying relief
3 min read
800,000-plus contractors need books kept and returns filed. Learn how you can build your business
8 min read
The IRS OPR's first guidance on responsible AI use dropped. Circular 230 duties apply when
4 min read