• James D. Lynch

The IRS Safe Harbor Provision

A taxpayer whose tax return shows a balance due of more than $1000 will be assessed an underpayment penalty for not paying in enough tax during the year, either through federal tax withholdings or estimated tax payments. However, the IRS safe harbor provision will eliminate the underpayment penalty in certain cases.

In order to be covered under the safe harbor provision, the taxpayer must pay at least the smaller of:

● 90% of the current year’s tax, or ● 100% of the prior year’s tax (or 110% if their adjusted gross income was greater than $150,000)

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Law Office of James D. Lynch, PLLC

3000 Joe Dimaggio Blvd #90, Round Rock, TX 78665


(512) 745-6347 (Austin / Round Rock)

‪(210) 201-6317‬ (San Antonio)

(714) 745-3875 (Los Angeles / Orange County)

©2020 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.