With Respect to Estimated Tax Payments for a Taxpayer with AGI

question 41

Multiple Choice

With respect to estimated tax payments for a taxpayer with AGI of $150,000 or lower in the prior year,all of the following are generally true with the exception of

• A)no penalty is imposed if the estimated tax is less than $1,000.
• B)no penalty is imposed if the individual has no tax liability for the prior year.
• C)no underpayment penalty is imposed if the estimated payments total at least 90% of the tax due for the current year.
• D)no underpayment penalty is imposed if the estimated payments total at least 90% of the actual tax liability for the prior year.