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Accounting, Taxes
The Internal Revenue Service is automatically waiving estimated tax penalties for more than 400,000 eligible taxpayers who already filed their 2018 taxes but did NOT claim the waiver. The IRS will apply this waiver to tax accounts of all eligible taxpayers. There is no need to contact the IRS to apply for or request the waiver. 



Earlier this year, the IRS lowered the usual 90% penalty threshold to 80%. This was done to help taxpayers whose withholding and estimated tax payments fell short of their total 2018 tax liability. The agency also removed the requirement that estimated tax payments be made in four equal installments, as long as they were made by Jan 15, 2019.

The automatic waiver applies to any individual taxpayer who paid at least 80% of their total tax liability through federal income tax withholding or quarterly estimated payments, but did not not claim the special waiver available to them when they filed their 2018 return earlier this year. 

In an Effort to Help Taxpayers

According to IRS Commissioner Chuck Rettig,  “the IRS is taking this step to help affected taxpayers.” In addition, he states, “This waiver is designed to provide relief to any person who filed too early to take advantage of the waiver or was unaware of it when they filed.”

The IRS will mail copies of notice CP 21 granting this relief to the affected taxpayers. Any eligible taxpayer who has already paid the penalty will also receive a refund check about three weeks after their CP 21 notice regardless of whether or not they requested penalty relief.

What You Need To Do

For those yet to file their 2018 tax return, the IRS urges every eligible taxpayer to claim the waiver on their return. This includes those with tax-filing extensions due to run out on October 15th, 2019. 

The waiver most likely applies to anyone with unexpected tax bill or penalty on their tax return this year. It also likely applies to those who made withholding adjustments in 2018 or had a major life change. Those that are high at risk for having too little tax withheld include those who itemized in the past but now take the increased standard deduction, as well as two wage-earner households, employees with non-wage sources of income and those with complex tax situations.

To discuss, give us a call at 678-235-5460, or send an email to Gary.Massey@MasseyandComapnyCPA.com. You can also contact us directly through our website by visiting our Home Page





Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.

Gary Massey, CPA
Massey and Company CPA
3550 Lenox Road NE, Suite 2100, 
Atlanta, GA 30326
Massey and Company 

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Do you have upcoming travel plans? If you are owe significant tax debt, you could be in for a surprise. Your passport can be revoked on account of the debt you owe. If you have significant tax debt, you should contact the IRS or your tax professional as soon as possible to avoid the revocation of your passport. 



How Much Debt is Too Much?

The IRS will notify the State Department of all taxpayers who owe a seriously delinquent tax debt, which is currently $52,000 or more.  The State Department may deny passport applications or renewals from those individuals. If the individual has a valid passport, the State Department has the power to revoke their passport or restrict their ability to travel internationally.

If You Owe Debt, Don’t Wait!

When a passport is revoked, the taxpayer or their representative will have to petition the IRS for the action to be reversed.  Expedited processing of these petitions reduces the normal 30-day processing time by 14-21 days.   However, taxpayers seeking expedited action will need to be able to demonstrate to IRS that they have travel scheduled within a 45-day time-frame, or that they live abroad. 

Taxpayers or their representatives must call the IRS within 30 days after receiving notification that their passport will be denied or revoked.  The matter can often be corrected if the taxpayer is able to show a good-faith attempt to resolve their tax debt.   For example, this can be done by means of an Offer in Compromise or an Installment Agreement.


Working with the IRS on passport matters can be intimidating. Our firm regularly represents taxpayers with significant tax debts, including those faced with the revocation of their passport. For a free consultation, contact Gary Massey, CPA by calling 678-235-5460, or email us at gary.massey@masseyandcompanyCPA.com.



Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.

Gary Massey, CPA
Massey and Company CPA
3550 Lenox Road NE, Suite 2100
Atlanta, GA 30326
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