Under current law, estimated tax payments are required for taxpayers who expect to owe $500 or more in income tax after subtracting withholding and refundable credits. Penalties and interest apply if the estimated payments are not remitted.
This bill provides that the penalties do not apply for taxpayers who expect to owe less than $1,000 and submit a request for waiver of penalty attesting that the underpayment was due to uncertainties in tax planning due to enactment of the federal Tax Cuts and Jobs Act. The commissioner must prescribe the form and manner for requesting the waiver. For taxpayers who do not request a waiver, the penalty under current law applies.
Effective the day following final enactment for tax years 2018 and 2019.
|