ASMP — American Society of Media Photographers

Good tax news for Freelancers! The IRS is automatically waiving 2018 estimated tax penalties

By August 20, 2019 August 21st, 2019 Current News

Cross-posted from Freelancers Union
[by Jonathan Medows]

The Internal Revenue Service has really been digging into its watchdog role lately, but here’s proof that the agency tries to take a balanced approach when it can: The IRS has announced that it will automatically waive the estimated tax penalty for over 400,000 eligible taxpayers who have already filed their 2018 federal income tax returns but who didn’t claim the waiver.

This announcement comes in addition to a move by the IRS to lower the usual 90 percent penalty threshold to 80 percent — to help taxpayers whose withholding and estimated tax payments fell short of their total 2018 tax liability. Another helpful action from the IRS  for freelancers is the agency’s removal of the requirement that estimated tax payments be made in four equal installments (They all needed to be made by Jan. 15, 2019).

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