Taxpayer Penalty Protection Act of 2021
This bill exempts taxpayers from penalties for failure to pay estimated income tax in taxable years beginning in 2020 if such taxpayers (1) paid at least 70% of the tax due for the current year, and (2) paid 70% (90% if adjusted gross income exceeds $150,000) of tax shown on returns for the prior year.
To provide for a temporary safe harbor for certain failures by 
                individuals to pay estimated income tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taxpayer Penalty Protection Act of 
2021''.

SEC. 2. TEMPORARY SAFE HARBOR FOR FAILURE BY INDIVIDUALS TO PAY 
              ESTIMATED INCOME TAX.

    In the case of any taxable year beginning in 2020--
            (1) In general.--Section 6654(d)(1)(B) of the Internal 
        Revenue Code of 1986 shall be applied--
                    (A) by substituting ``70 percent'' for ``90 
                percent'' each place such term appears in clause (i) of 
                such section, and
                    (B) by substituting ``70 percent'' for ``100 
                percent'' in clause (ii) of such section.
            (2) Individuals with adjusted gross income in excess of 
        $150,000.--Section 6654(d)(1)(C)(i) of such Code shall be 
        applied by substituting ``90 percent'' for ``110 percent'' (and 
        without regard to the substitution made by paragraph (1)(B) of 
        this section).
            (3) Farmers and fishermen.--Section 6654(i) of such Code 
        shall be applied without regard to the substitutions made by 
        this section.
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Taxpayer Penalty Protection Act of 2021
To provide for a temporary safe harbor for certain failures by individuals to pay estimated income tax.
Taxpayer Penalty Protection Act of 2021
Rep. Chu, Judy