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Notice 2021-8: Relief from addition to tax, underpayment of individuals’ estimated income tax (COVID-19)

Notice 2021-8

The IRS today released an advance version of Notice 2021-8 to provide a waiver of the addition to tax for an underpayment of estimated income tax by individual taxpayers when the underpayment is attributable to an amendment to section 461(l)(1)(B) made by the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136).


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The relief provided by Notice 2021-8 [PDF 114 KB] is not automatic and:

  • Is limited to waiving an amount of the addition to tax under section 6654 that is attributable solely to the CARES Act amendment to section 461(l)(1)(B)
  • Applies only for the purpose of calculating installments of estimated income tax of an individual taxpayer that were due on or before July 15, 2020, with respect to the tax year that began during 2019
  • Is available to any qualifying estate or trust that is treated as an individual taxpayer for purposes of section 6654 and that is subject to the section 6654 estimated tax payment requirements with respect to its income

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