IRS Waives Late Tax Filing; The IRS has expanded the tax penalty for the year of 2018 for all taxpayers in the USA. With this great news of no penalty on late tax filing in USA. The taxpayers are getting more relief from tax penalties. Threshold of underpayment is lowered to approximately 80%. In February 2018, IRS extended tax penalty relief specifically for those taxpayers in USA; who did not pay sufficient of their federal income tax liability; in the year 2018 because of the changes and amendments in the tax reform.
The percentages of tax you should pay to IRS:
At least 90 percent of the estimated tax payments during the entire year taxpayers should pay. But now, the Internal Revenue Service brought a much bigger relief to all tax professionals in the United States; by lowering down the withholding underpayment threshold to 85 percent. This step can also decrease IRS representation in the United States for most of the tax professionals. The most important thing to note is that the IRS penalty relief for late tax payment only applies to 2018 returns in USA.
Details of IRS Penalty Relief for Late Tax Payment:
A pay-as-you-go system is used to govern the federal income tax in the United States. It means that to pay the specific tax liability, it is the requirement for taxpayer to file the taxes according to the money they earn through the whole year. The majority of the income tax bill comes through tax withholdings. Basically, The withheld amount from the paycheck uses to cover the tax liability. It means that if you claim more withholdings, you have withheld the less amount of tax or if you claim the fewer withholdings, you have withheld the more amount of taxes in the United States.
We can help you to pay your tax
We can help you to plan your withholdings to save money on taxes in USA. However, those self-employed individuals can pay their tax bill through estimated tax payments in USA and who has quarterly during the year. Furthermore, pension payments can also be utilized by individuals to withhold taxes. If you need any further help regarding complete accounting & taxation services in USA, Black Ink can guide you with satisfaction.
Explanation of IRS Late Tax Payment Penalty Relief:
Let’s take an example of IRS late tax filing penalty relief in the United States. Suppose, your tax liability was $15,000 for the year 2018 and the amount of the tax withheld from your paychecks; during the same year only covered a total of $12,750 from that amount of $15,000. According to the old IRS penalty rule for late tax filing and payment; you would be liable to pay an underpayment penalty to the IRS.
According to the new IRS penalty rule for late tax filing and payment for the year 2018; Underpayment penalty is not for taxpayers. The adjustment of new rule of IRS reduce the 90 percent threshold to 80 percent; for the creation of a buffer for those taxpayers in USA who unintentionally did not cover quite sufficient tax withheld. You can also avoid missing deadlines by the IRS with the reliable tax preparation services in the United States that can surely save your money and time.
How to Request Penalty Relief from IRS:
As IRS Waives Late Tax Filing, You can easily request for a penalty relief from the Internal Revenue Service (IRS) by filing Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, along with your income tax return for the year 2018. If you need any help to get IRS penalty relief, our representative can guide you after a request callback to us.
How to Avoid Underpayment in 2019:
W-4 for the year 2019 has some required changes. If you did not withhold enough taxes in the year 2018. Black Ink can also provide support for Tax Form W-4 filing services throughout NY, USA to its clients with guaranteed success and favorable results. It is the requirement that employees has to make adjustments in Form W-4 and then submit to their employers. The self-employed individuals in USA are required to increase the amount of their estimated quarterly taxes so that they do not fail to reach the target once again.
IRS waives late tax, If you have missed the extended tax filing date of 15th October 2018 in the United States, follow our post to get all answers to your panic condition regarding ‘what should I do if missed the extended tax payment date in USA’.