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Tax Payment Flexibility: Avoiding Penalties for Individuals

New rules aim to simplify income tax payments for individuals. You can avoid penalties for not paying on time if you pay at least 125% of your prior year's tax liability. This offers more financial flexibility and security, especially when filing extensions.
Key points
Individuals can avoid penalties for late tax payments by paying 125% of their previous year's tax liability by the due date.
This rule applies only if you filed a tax return for the preceding year and that year was at least 12 months long.
These changes will apply to tax years beginning after December 31, 2024.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_990
Sponsor: Rep. Chu, Judy [D-CA-28]
Process start date: 2025-02-05
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
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 119_HR_990.

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 2025-02-05.

What are the main provisions?

Key points include:

  • Individuals can avoid penalties for late tax payments by paying 125% of their previous year's tax liability by the due date.
  • This rule applies only if you filed a tax return for the preceding year and that year was at least 12 months long.
  • These changes will apply to tax years beginning after December 31, 2024.
What is the specific legal status?

The current status is Introduced.

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 2025-12-23.

CATEGORIES

Taxes