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Tax Payment Simplification: Avoiding Penalties for Late Filing

New rules aim to help citizens avoid penalties for late income tax payments. If you pay 125% of your previous year's tax liability on time, even if you file your return later, you won't be penalized. This offers more flexibility in managing your finances and deadlines.
Key points
You can avoid a penalty for failing to pay income tax on time if you pay 125% of your prior year's tax liability by the original payment due date.
This rule applies to individuals and is effective for tax years beginning after December 31, 2022.
The exception does not apply if you did not file a return for the preceding year or if that year was less than 12 months.
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Additional Information
Print number: 118_HR_3566
Sponsor: Rep. Chu, Judy [D-CA-28]
Process start date: 2023-05-22
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

SAFE Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3566.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-05-22.

What are the main provisions?

Key points include:

  • You can avoid a penalty for failing to pay income tax on time if you pay 125% of your prior year's tax liability by the original payment due date.
  • This rule applies to individuals and is effective for tax years beginning after December 31, 2022.
  • The exception does not apply if you did not file a return for the preceding year or if that year was less than 12 months.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Chu, Judy [D-CA-28].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes