H.R. 990 — SAFE Act

This section establishes a new safe harbor under IRC §6651(c)(3) waiving the penalty for failure to pay tax shown on an individual's income tax return (under §6651(a)(2)) if the individual pays 125% of the tax shown on the prior year's return by the current year's payment due date (including extensions for payment). The waiver does not apply if the individual fails to timely file the current or prior year's return (including extensions), the prior year was less than 12 months, or for periods after the earlier of the current return's filing due date (including extensions) or actual filing date; special rules apply to joint filers based on prior-year filing status. The changes apply to taxable years beginning after December 31, 2024.