SAFE Act

This bill (HR 990, SAFE Act) prevents tax penalties for individual taxpayers who pay 125% of their prior year's income tax liability by the due date for their current year tax return. It directly affects individual taxpayers who file returns on time and have paid tax on a full 12-month prior year. The key provision allows taxpayers to avoid penalties for late payment if they meet these specific conditions, but the relief does not apply if they fail to file a return, didn’t file for the prior year, or if the prior year was less than 12 months. The bill amends tax code provisions to create this specific penalty exception for eligible individuals.