WBR wrote:It appears that the penalty is still calculated on 90% and not 85% of the underpayment amount.
Very generous.
Jeff-Ohio wrote:Very generous.
Yeah, except they made the announcement on January 16, 2019.
Importantly, the 6654 penalty can’t be waived for reasonable cause (unless disabled or newly retired).
But more importantly, those at the IRS who process waivers might not know this. So file a waiver. Load it up with reasonable cause excuses, including, “Notice 2019-11, which was issued on January 16, 2019, provided certain relief from the estimated tax penalty if a certain amount of estimated tax payments had been made by January 15, 2019). Had the taxpayer known about the relief offered in Notice 2019-11 prior to January 15, 2019 – the due date of the taxpayer’s fourth quarter, 2018 estimated tax payment – he most certainly would have made an estimated tax payment to obtain such relief.”
Here's another one I’m throwing in there – “It was not until early 2019 that it became entirely clear that investment expenses (itemized deductions subject to the 2% of AGI floor) would not be allowed for Form 8960 purposes. This caused the taxpayer to fall short on his estimated tax obligations.”
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