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)$1,250
B)$500
C)$850
D)$1,000

Question

Quizplus · Accepted Answer

The IRS generally 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