The Internal Revenue Service (IRS) recently announced that it will automatically waive the estimated tax penalty for over 400,000 eligible taxpayers whose withholding and estimated tax payments fell short of their 2018 tax liability, and it removed the requirement that estimated payments be made in four equal installments (if paid by January 15, 2019).
The automatic waiver applies to individual taxpayers who pre-paid at least 80 percent of their federal tax liability but did not claim the special waiver for their 2018 return. Qualifying individuals who paid the penalty should receive a refund.
“The IRS is taking this step to help affected taxpayers,” said IRS Commissioner Chuck Rettig. “This waiver is designed to provide relief to any person who filed too early to take advantage of the waiver or was unaware of it when they filed.”
For more information, read the IRS press release here.