Title: Taxpayer Penalty Protection Act of 2019
Policy area: Taxation

Summary:
Taxpayer Penalty Protection Act of 2019
This bill reduces the amount of estimated income tax that certain taxpayers are required to pay for 2018.
Presently, a penalty applies if taxpayers do not use either withholding or estimated tax payments to make a required annual payment before the end of the year. The required payment is the lesser of 90% of the tax for the taxable year or a specified percentage of the preceding year's tax.
For 2018, the bill reduces the percentage of the preceding year's tax from 100% to 80%. For taxpayers with adjusted gross incomes for the preceding year that exceed $150,000, the bill reduces the percentage from 110% to 100%.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1300 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 1300

    To provide for a temporary safe harbor for certain failures by 
                individuals to pay estimated income tax.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 15, 2019

 Ms. Judy Chu of California (for herself, Mr. Lewis, Ms. Sanchez, Mr. 
 Pascrell, Mr. Doggett, Mr. Gomez, Mr. Panetta, Mr. Evans, Mr. Brendan 
  F. Boyle of Pennsylvania, Mr. Larson of Connecticut, Ms. Sewell of 
 Alabama, Mr. Danny K. Davis of Illinois, Mr. Higgins of New York, and 
 Mr. Blumenauer) introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To provide for a temporary safe harbor for certain failures by 
                individuals to pay estimated income tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taxpayer Penalty Protection Act of 
2019''.

SEC. 2. TEMPORARY SAFE HARBOR FOR FAILURE BY INDIVIDUALS TO PAY 
              ESTIMATED INCOME TAX.

    In the case of a taxable year beginning in 2018--
            (1) In general.--Section 6654(d)(1)(B) of the Internal 
        Revenue Code of 1986 shall be applied--
                    (A) by substituting ``80 percent'' for ``90 
                percent'' each place such term appears in clause (i) of 
                such section, and
                    (B) by substituting ``80 percent'' for ``100 
                percent'' in clause (ii) of such section.
            (2) Individuals with adjusted gross income of $150,000.--In 
        the case of an individual to whom section 6654(d)(1)(C) of such 
        Code would (but for this paragraph) apply, section 6654 of such 
        Code shall be applied without regard to--
                    (A) paragraph (1)(B) of this Act, and
                    (B) section 6654(d)(1)(C) of such Code.
            (3) Farmers and fishermen.--Section 6654(i) of such Code 
        shall be applied without regard to this Act.
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