WASHINGTON – Taxpayers who withheld too little of their income during 2018 will not incur a penalty, according to the Internal Revenue Service.
The IRS said it's in response to the tax-code changes made by President Trump's tax law. In a news release, IRS Commissioner Charles Rettig said:
"We realize there were many changes that affected people last year, and this penalty waiver will help taxpayers who inadvertently didn't have enough tax withheld... We urge people to check their withholding again this year to make sure they are having the right amount of tax withheld for 2019."
President Trump's administration expects 90 percent of taxpayers to owe less income tax under the Tax Cuts and Jobs Act of 2017, according to a report by USA Today. Most taxpayers have already seen the benefits as employers withhold less money from their paychecks.
The waiver will be available to taxpayers who withheld or made estimated payments totaling at least 85 percent of their taxes due, USA Today wrote.