This legislation amends the Internal Revenue Code of 1986 to provide a new mechanism for individuals to avoid penalties for failure to pay income tax. The penalty will not apply if an individual timely pays 125 percent of their income tax liability from the immediately preceding tax year , on or before the prescribed date for the current year's tax payment, including any extensions. This exemption is subject to specific conditions: it does not apply if the individual fails to file a return for the current year on time, did not file a return for the preceding year, or if the preceding tax year was less than 12 months. Special rules are also provided for joint returns when filing status changes. The protection from penalty provided by this measure ceases for any period beginning after the filing deadline for the current year's return, or the date the return was filed, whichever is earlier. The amendments made by this Act will take effect for taxable years beginning after December 31, 2024.