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2018 penalties waived for some paying taxes late

Taxpayers in Georgia may be relieved to learn that they could be exempt from a certain penalty imposed on filers. Each year, people must generally pay at least 90% of their total tax burden prior to filing their returns. If they do not, they will receive an additional fee as an underpayment penalty from the IRS. However, for 2018 returns, those who paid at least 80% of their burden prior to filing will automatically have the penalty waived. The IRS noted that a special penalty waiver was available in the spring, but many eligible taxpayers failed to claim it in time.

They will instead receive the waiver automatically. Of course, the waiver only extends to the penalty fee itself. People still must pay the amount of money that they owe in taxes, but they will not have to add the additional cost to their payments. In general, people face even harsher standards for tax liabilities if they have a high income, over $150,000 each year. However, due to changes in tax law that were enacted in late 2017, many changes took place in the way that taxes were withheld. Some individual income tax rates were cut, and the standard deduction was doubled. Accounting systems did not necessarily change in time, and withholdings may have been incorrect for many people.

The prospect of a significant problem caused by confusion associated with the changes to the law caused the IRS to issue the penalty waiver for 2018. It is designed to cover people whose disparities in tax payments are likely linked to accounting errors that came with the changes to the laws.

Tax law can involve many complicated issues. People who need to sort out tax-related issues may work with an attorney to deal with IRS audits, appeals or other concerns about their taxes.

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