As a result of tax law changes included in the Tax Cuts and Jobs Act, Notice 2019-11 provides that the IRS will waive individual estimated tax penalties for the 2018 tax year if total estimated tax payments and withholding made on or before Jan. 15, 2019, are at least 85 percent of the tax due for 2018. Individuals requesting this wavier must file Form 2210, “Underpayment of Estimated Tax by Individuals, Estates, and Trusts,” with their 2018 individual tax return; check the waiver box (Part II, Box A); and include the statement “85% Waiver” with the return.
Generally, individual taxpayers are subject to estimated tax penalties if the total of tax withholding and estimated tax payments is less than 90 percent of current year tax due or 100 percent of prior year tax due if prior year adjusted gross income was less than or equal to $150,000 ($75,000 for married filing separate taxpayers).
Taxpayers with prior year adjusted gross income that exceeded $150,000 ($75,000 for married filing separate taxpayers) are subject to estimated tax penalties if the total of tax withholding and estimated tax payments is less than 110 percent of prior year tax due.
Relief provided by Notice 2019-11 applies only to individuals.