Which of the Following Statements About Estimated Tax Payments and Underpayment

question 64

Multiple Choice

Which of the following statements about estimated tax payments and underpayment penalties is true for individual taxpayers?

• A)Taxpayers who have paid their full tax liability by the original tax return due date are protected from underpayment penalties.
• B)Taxpayers who have paid their full tax liability by the extended tax return due date are protected from underpayment penalties.
• C)Taxpayers who have uneven income streams can pay estimated tax quarterly in uneven amounts and not be susceptible to underpayment penalties.
• D)Taxpayers who have paid their required amount of estimated tax, even though not on time, are protected from underpayment penalties.

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Definitions:

Cork Cells

Waterproof cells forming the outer protective layer of the bark in trees and other plants, composed of dead cells at maturity.

Vascular Bundle

A strand of tissue in plants that contains both xylem and phloem, responsible for the transport of water, minerals, and nutrients.

Cork Cambium

A layer of tissue in plants that produces cork, a protective barrier for the surface of stems and roots.

Ground Tissue

The bulk of most plant tissues, filling the space between the epidermis and vascular tissue systems, involved in photosynthesis, storage, and support.