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January 19, 2021

IRS will waive additions to tax for underpayment of estimated income tax by individuals affected by CARES Act changes to IRC Section 461

The IRS has announced (Notice 2021-08) it will waive the addition to tax under IRC Section 6654 for individuals' underpayment of estimated tax if the underpayment is attributable to changes the CARES Act made to IRC Section 461(l)(1)(B). The waiver is not automatic and applies only to estimated income tax installments due on or before July 15, 2020, for a tax year that began in 2019. A Tax Alert is forthcoming.