Underpayment penalty and estimated taxes

FinallyInSeattle · ‎March 17, 2021

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?

PattiF · ‎March 17, 2021

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:

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View solution in original post

PattiF · ‎March 17, 2021

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:

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Underpayment penalty and estimated taxes