Taxpayer Penalty Protection Act of 2018

Bill: 115-hr-7300
Sponsor: full_name: Rep. Chu, Judy [D-CA-27]
Introduced: 2018-12-13
Policy area: Taxation
Subjects: Tax administration and collection, taxpayers
Latest action: action_date: 2018-12-13
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2018-12-13
action_desc: Introduced in House
text: <p><b>Taxpayer Penalty Protection Act of 2018 </b></p> <p>This bill amends the Internal Revenue Code to establish a safe harbor to reduce the amount of estimated income tax that certain taxpayers are required to pay for 2018.</p> <p>(Under current law, 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.) </p> <p>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%.</p> <UL> </UL>

tv_txt: I 115th CONGRESS 2d Session H. R. 7300 IN THE HOUSE OF REPRESENTATIVES December 13, 2018 Ms. Judy Chu of California (for herself, Mr. Doggett , Mr. Larson of Connecticut , Mr. Danny K. Davis of Illinois , Mr. Higgins of New York , and Ms. Sánchez ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To provide for a one-time safe harbor for certain failures by individuals to pay estimated income tax.

1. Short title This Act may be cited as the Taxpayer Penalty Protection Act of 2018 . 2. Safe harbor for failure by individuals to pay estimated income tax In the case of a taxable year beginning in 2018— (1) section 6654(d)(1)(B)(ii) of the Internal Revenue Code of 1986 shall be applied by substituting 80 percent for 100 percent ; and (2) the table in section 6654(d)(1)(C) of such Code shall be applied by substituting 100 for 110 .