Which of the Following Statements About Estimated Tax Payments and Underpayment

question 126

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.Even if the stream of income changes throughout the year,quarterly estimated tax can be paid using rolling percentages of the estimated tax liability for the year.

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Definitions:

Select

The process of choosing or making a decision when faced with two or more possibilities.

Organize

refers to arranging or structuring people, resources, or tasks systematically to achieve specific goals or outcomes efficiently.

Selective Screening

Allows only a portion of available information to enter our perceptions.

Conscious Awareness

Pertains to being fully aware and mindful of one's immediate environment, thoughts, and feelings.