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FinallyInSeattle
Level 2

Underpayment penalty and estimated taxes

I understand the rule of paying either 100% of last year's taxes or 90% of current year's taxes to avoid a penalty. 

Do I avoid a penalty if I reach 90% of what I owe in the last estimated tax payment of the year or is there a penalty for not paying enough earlier in the year?

1 Best answer

Accepted Solutions
pattif12
Expert Alumni

Underpayment penalty and estimated taxes

Yes, there is a penalty for not paying enough throughout the year, The IRS has been enforcing this more in the last few years.

 

Here is some information from the iRS:

 

View solution in original post

1 Reply
pattif12
Expert Alumni

Underpayment penalty and estimated taxes

Yes, there is a penalty for not paying enough throughout the year, The IRS has been enforcing this more in the last few years.

 

Here is some information from the iRS:

 

View solution in original post

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