Which of the Following Statements About Estimated Tax Payments and Underpayment

question 142

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:

Pilot Device

Control equipment that directs the operation of another device or system, often based on user input.

Two-wired Motor

A motor that is designed to be connected and operated with two electrical wires, simplifying its electrical installation.

Control Circuits

Electrical circuits designed to control the operation of other circuits or devices through the use of signals.

Differential Control

A control strategy where the difference between two signals or values is used to regulate a process or system.