Bill · H.R. 990· House(119-HR-990)
SAFE Act
- Introduced
- 2/5/2025
- Last activity
- 2/5/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Judy Chu
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
This bill, known as the "Simplify Automatic Filing Extensions Act" or the "SAFE Act," proposes changes to the Internal Revenue Code of 1986. It aims to allow individuals to avoid a penalty for failure to pay income tax. To qualify, an individual must timely pay 125 percent of the income tax liability from the previous year. The bill includes specific exceptions regarding filing requirements and short taxable years. It also addresses how joint returns are handled for the purpose of calculating the required payment.
Yes· 3 of 11
Would middle-income households be better off under this?+3
The bill helps middle-income earners avoid certain tax penalties by paying a set percentage of their previous year's liability.
Would households on low incomes be better off under this?+2
The bill provides relief from failure-to-pay penalties for individuals who can afford to pay 125 percent of their prior year's tax liability.
Would high-income households be better off under this?+2
High earners can utilize this rule to avoid failure-to-pay penalties if they meet the payment threshold.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Avoidance of Penalties: Individuals can avoid a penalty for failure to pay income tax if they pay 125 percent of their prior year's tax liability by the prescribed date (Section 2(a)(3)(A)).
Potential Negative Impacts for People
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Failure to File Restrictions: The benefit of avoiding the penalty does not apply if the individual fails to file an income tax return for the preceding taxable year on time (Section 2(a)(3)(B)(i)).
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Short Taxable Year Restriction: The penalty avoidance does not apply if the immediately preceding taxable year was less than 12 months (Section 2(a)(3)(B)(iii)).
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Timing Requirements: The exception for avoiding the penalty does not apply to periods beginning after the prescribed filing date or the date the return was filed (Section 2(a)(3)(D)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+3Good For African Americans+2Good For Asian Americans+2Good For Billionaires+2Good For High Income Households+2Good For High Net Worth Individuals+2Good For Hispanic Americans+2Good For Low Income Households+2Good For Native Americans+2Good For Ultra High Net Worth Individuals+2Good For White Americans+2
- 2/5/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Mike CareyRepublican · Ohio