U.S. Internal RevenueService building in Washington, D.C. (Photo: Diego M.Radzinschi/THE NATIONAL LAW JOURNAL.)

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(Bloomberg) –Taxpayers who miscalculated how much they'll owethe Internal Revenue Service this year won't get hit with penalties — up to a certain point.

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The Treasury Department said Wednesday it won't penalizeindividuals who underpaid their estimated taxes for 2018, as long as they paid 85 percentof what they owe through withholding or estimated quarterlypayments.

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The 2017 tax overhaul changed the tax brackets, expandedthe child tax credit and nearly doubled the standard deduction to$24,000 for a married couple — all changes that affect how much anindividual will owe in taxes this year. This is the first filingseason individuals are paying taxes under the new rules.

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Salaried workers have their taxes withheld from their paychecks.Business owners and self-employed people pay estimated taxes to theIRS quarterly. Those who still owe taxes will have to pay the IRSthe additional tax they owe by April 15, the tax filing deadline,or file for a six-month extension.

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The announcement comes after the top Republican and Democrat onthe Senate Finance Committee, Chuck Grassley and Ron Wyden, urgedthe agency to be lenient with penalties as taxpayers adapt to thechanges stemming from the tax overhaul.

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Moments before Treasury's announcement, Grassley took to theSenate floor to urge the IRS and Treasury to provide relief totaxpayers but to also include guardrails to prevent abuse.

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“The IRS should consider what action the agency can take toprovide penalty relief,” Grassley said. “But the issue ofunderwithholding due to the passage of tax reform should not beexaggerated.”

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READ MORE:

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10 new tax numbers to know for2019

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Everything you need to know about the new IRSemployer tax credit

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IRS bumps up 401(k) contribution limits for2019

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