A bill to waive the penalty for certain underpayments of estimated tax attributable to the repeal of the sick pay exclusion by the Tax Reform Act of 1976.

Amends the Internal Revenue Code to waive the penalty for underpayments of estimated individual income taxes which are attributable to amounts received under wage continuation plans which were not includible in gross income until enactment of the Tax Reform Act's provisions relating to the inclusion of sick pay.