CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

Treat yourself to a resort conference before prices go up, or save on Federal Tax Updates until midnight, April 30th.

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.

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