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.

---

Definitions:

Agents

Persons authorized to act on behalf of another, known as the principal, in legal or business matters.

Succession Planning

The strategy for identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.

Career Planning

The process of setting career objectives and determining the steps and actions to achieve them.

Number

A mathematical object used to count, measure, and label.