An individual could pay 100 percent of her tax liability by the due date of her tax return and still be subject to underpayment tax penalties.

Question

Quizplus · Accepted Answer

The underpayment tax penalty is based on whether an individual paid enough tax throughout the year, not just by the due date of their tax return. Even if they pay 100% of their tax liability on the due date, if they did not pay enough throughout the year, they may still be subject to underpayment tax penalties.

An Individual Could Pay 100 Percent of Her Tax Liability