Question: Anna does not make quarterly estimated tax payments even though she has substantial amounts of income that are not subject to withholding. In the previous

Anna does not make quarterly estimated tax payments even though she has substantial amounts of income that are not subject to withholding. In the previous year, Anna’s tax liability was $18,000 and her AGI was $ 135,000. In the current year, Anna’s actual tax liability is $30,000, and $18,200 was withheld from her salary.
a. Is Anna subject to the underpayment penalty? Why?
b. If Anna’s withholdings were only $15,000, would she be subject to the underpayment penalty? Why?
c. If Anna is subject to an underpayment penalty, can she deduct this amount as interest? Explain.

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