IRS automatically waives estimated tax penalty for eligible 2018 filers

The IRS recently announced it is automatically waiving the estimated tax penalty for eligible taxpayers who already filed their 2018 federal income tax returns but did not claim the waiver. Many business owners, especially self-employed individuals who received income subject to withholding, would qualify for this relief.

The waiver applies to any individual taxpayer who paid at least 80% of their total tax liability through federal income tax withholding, or quarterly estimated tax payments, but did not claim the waiver when they filed their 2018 return.

The agency also removed the requirement that estimated tax payments be made in four equal installments, as long as they were all made by Jan. 15, 2019.

For more information, see the IRS news release: IRS automatically waives estimated tax penalty for eligible 2018 filers.