_____ 11.All corporations whose income tax liability is less than $1,000,000 in the current year can avoid an underpayment penalty if each of their estimated tax payments is 25 percent or more of their immediately preceding tax year's tax liability.

Question

Quizplus · Accepted Answer

Corporations can avoid an underpayment penalty if each estimated tax payment is at least 25% of the current year's tax liability or 100% of the previous year's tax liability, not just based on the previous year's liability alone.

_____ 11All Corporations Whose Income Tax Liability Is Less Than $1,000,000