Failure to make required estimated payments will subject the taxpayer to a potential underpayment penalty plus interest.However,if the difference between the tax shown on the return and the amount of tax withheld for wages is less than ________,the taxpayer will not be assessed a penalty.
A)$850
B)$500
C)$1,000
D)$1,250

Question

Quizplus · Accepted Answer

The IRS does not impose an underpayment penalty if the difference between the tax shown on the return and the amount of tax withheld is less than $1,000.

Failure to Make Required Estimated Payments Will Subject the Taxpayer