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

Question

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Even if an individual pays 100% of their tax liability by the due date of their tax return, they may still be subject to underpayment tax penalties if they did not make timely estimated tax payments or had too little tax withheld throughout the year. The IRS requires taxpayers to pay a certain amount of tax throughout the year, and failure to do so can result in penalties, even if the final tax liability is paid on time.

An Individual Could Pay 100% of Her Tax Liability by the Due