Happy,Sleepy,Grumpy,and Doc all did not make adequate estimated payments.Which of them will not owe underpayment penalties for 2013 given the following information?

Question

Quizplus · Accepted Answer

Without additional information, it is impossible to determine which of the individuals will not owe underpayment penalties. It is possible for any of them to avoid penalties if they meet certain criteria, such as having a lower tax liability in the previous year or paying at least 90% of the current year's tax liability. Therefore, the best choice is E, as it acknowledges that it is uncertain which individuals will owe penalties.

Happy,Sleepy,Grumpy,and Doc All Did Not Make Adequate Estimated Payments