Underpayment Penalty

外汇网2021-06-19 14:18:51 238

A tax penalty enacted on an inpidual for not paying enough of his or her total estimated tax and withholding. If an inpidual has an underpayment of estimated tax, they may be required to pay a penalty (on Form 2210).

To avoid an underpayment penalty you must pay either 100% of last year's tax or 90 percent of this year's tax by combining estimated and withholding taxes.

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