A bill to amend the Internal Revenue Code of 1954 to permit the Internal Revenue Service to waive the penalty imposed on underpayments of estimated tax where there was reasonable cause for the underpayment.

Amends the Internal Revenue Code to authorize the Secretary of the Treasury to waive the penalty imposed on underpayments of estimated tax upon a showing by the taxpayer that the underpayment of estimated tax was due to reasonable cause and not to willful neglect.