Taxpayers Are Charged Interest on Underpayments of Taxes And

Taxpayers are charged interest on underpayments of taxes and:

A) In some cases,the IRS pays interest to taxpayers when they overpay their taxes
B) The IRS imposes a deductible penalty based on amounts of underpayments of estimated taxes for the current tax year.
C) A taxpayer is paid interest on a refund arising from overpayments of estimated taxes for the current tax year.
D) The interest rate used both on overpayments and underpayments is the federal short-term rate.
E) Interest is compounded daily when calculating the penalty for underpayment of estimated taxes.