Underpayment Penalty

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Dictionary Says

Definition of 'Underpayment Penalty'

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

Investopedia explains 'Underpayment Penalty'

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.
Search results for

'Underpayment Penalty'

  • 7 Ways To Avoid Self-Employed Tax Penalties

    http://www.investopedia.com/articles/tax/09/self-employed-avoid-tax-penalties.asp
    ... You will still be liable for differences in taxes between this year and
    the last, but you won't pay an underpayment penalty. For ...

  • Surviving The IRS Audit

    http://www.investopedia.com/articles/pf/06/IRSAudit.asp
    ... prove otherwise. Otherwise, the entire underpayment will be treated as
    fraudulent and subject to a 75% penalty. Interest Due - For ...

  • Surviving The IRS Audit

    http://www.investopedia.com/articles/pf/06/irsaudit.asp
    ... prove otherwise. Otherwise, the entire underpayment will be treated as
    fraudulent and subject to a 75% penalty. Interest Due - For ...

  • 10 Money-Saving Year-End Tax Tips

    http://www.investopedia.com/articles/pf/06/YearEndTax.asp
    ... From Retirement Plan Distributions To Pay Estimated Taxes You may be required to
    pay estimated taxes to the IRS to avoid a penalty for underpayment of taxes. ...

  • 5 Retirement Plan Moves To Make Before Year-End

    http://www.investopedia.com/articles/retirement/06/yearendtips.asp
    ... From Retirement Plan Distributions to Pay Estimated Taxes You may be required to
    pay estimated taxes to the IRS to avoid a penalty for underpayment of taxes. ...

  • Cut Your Tax Bill

    http://www.investopedia.com/articles/pf/07/save-on-taxes.asp
    ... during the year. This will help to avoid getting hit with a penalty for
    underpayment of estimated taxes. Unfortunately, money is ...

  • How To Report A Tax Cheat

    http://www.investopedia.com/articles/taxes/09/reporting-tax-cheats.asp
    ... form providing your report, you are stating, "I declare under penalty of perjury ...
    The Bottom Line Underpayment of federal income taxes (and, subsequently, state ...

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