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IRS waives withholding penalty; warns number who owe taxes likely larger than in recent years

Source: al.com - Jan 17, 2019

The Internal Revenue Service will waive penalties against taxpayers who withheld too little last year, the agency announced.

The fee – known as the estimated tax penalty – will be waived for any taxpayer who withheld or made quarterly estimated tax payments totaling at least 85 percent of their taxes due. The usual percentage threshold to avoid a penalty is 90 percent.

The waiver comes just as millions of Americans file for the first time under the Trump administration tax plan.

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Category: General Business