Taxpayer Penalty Protection Act of 2019

Bill: 116-s-687
Sponsor: full_name: Sen. Gillibrand, Kirsten E. [D-NY]
Introduced: 2019-03-06
Policy area: Taxation
Subjects: Income tax rates

Interest, dividends, interest rates

Tax administration and collection, taxpayers
Latest action: action_date: 2019-03-06
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-03-06
action_desc: Introduced in Senate
text: <p><b>Taxpayer Penalty Protection Act of </b><b>2019</b></p> <p>This bill reduces the amount of estimated income tax that certain taxpayers are required to pay for 2018.</p> <p>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.</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>

tv_txt: II 116th CONGRESS 1st Session S. 687 IN THE SENATE OF THE UNITED STATES March 6, 2019 Mrs. Gillibrand introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide for a temporary 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 2019 . 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.