In Notice 2019-17
, the IRS granted a penalty waiver for estimated tax penalties assessed against qualifying individual farmers and fishermen.
Under Section 6654, estimated income tax paid by individuals must be done so in four separate installments of 25% of the required annual payment, or else the IRS may assess a penalty. Qualifying individual farmers and fishermen, however, make only one installment payment by Jan. 15 of the year following the taxable year. Those that do not make that required estimated tax installment payment by Jan. 15 may avoid the penalty by filing an income tax return and paying the full amount of tax reported by March 1.
In the notice, the IRS stated that it would waive penalties for the underpayment of estimated income tax for the 2018 tax year for any qualifying farmer or fisherman who files his or her 2018 income tax return and pays in full any tax due by April 15, 2019. Taxpayer living in Maine or Massachusetts have until April 17, 2019, to file returns and pay any tax due.
In Notice 2019-11, the IRS granted a broad penalty waiver of estimated tax penalties for all individuals who met certain withholding thresholds. For more information, see our past Tax Hot Topics
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