A nondeductible penalty is imposed on underpayments of estimated taxes.

Name: A nondeductible penalty is imposed on underpayments of estimated taxes.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A nondeductible penalty is indeed imposed on underpayments of estimated taxes. This penalty is calculated based on the difference between the amount of estimated tax owed and the amount of estimated tax paid, and it is not deductible on the taxpayer's income tax return.

A Nondeductible Penalty Is Imposed on Underpayments of Estimated Taxes