Penalty for Underpayment of Estimated Taxes?

Answer A taxpayer, or the taxpayer's employer, must send in tax payments throughout the year, and the taxpayer calculates the actual tax liability the next year. The taxpayer has to estimate the amount of... Read More »

Top Q&A For: Penalty for Underpayment of Estimated Taxes

How much is the penalty for underpayment of income taxes?

United States law requires corporations, citizens and resident aliens to pay taxes depending on their level of income. The Internal Revenue Service (IRS) will penalize you for nonpayment or underpa... Read More »

What Is the Penalty for Paying Federal Estimated Taxes Late?

The Internal Revenue Service uses a pay-as-you-go tax system, which means that as you earn money, you must make estimated tax payments. Most people satisfy this requirement by having their employer... Read More »

Statute of Limitations for Non-Filing or Underpayment of Taxes?

For any year you underpay your federal income tax or fail to file a tax return, the IRS can levy an array of penalty and interest charges as well as some pretty severe collection procedures. Also, ... Read More »

How to Calculate Estimated Tax Penalty?

Tax penalties are imposed on taxpayers whose income taxes are delinquent. Returns are considered delinquent if they are not filed by the appropriate deadline, which is March 15 for business returns... Read More »