H.R.7300 - Taxpayer Penalty Protection Act of 2018115th Congress (2017-2018)
|Sponsor:||Rep. Chu, Judy [D-CA-27] (Introduced 12/13/2018)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 12/13/2018 Referred to the House Committee on Ways and Means. (All Actions)|
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Summary: H.R.7300 — 115th Congress (2017-2018)All Information (Except Text)
Introduced in House (12/13/2018)
Taxpayer Penalty Protection Act of 2018
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.
(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.)
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%.