Pams prior year (Year 1) income tax liability was $23,000. Her current year (Year 2) AGI did
Question:
a. Will Pam owe a penalty for not paying sufficient estimated taxes? Explain.
b. What amount (if any) per quarter is subject to the penalty, and for what period will the penalty be imposed for each quarter’s underpayment?
c. How would your answers to parts a and b change if Pam’s current year (Year 2) tax liability (including self-employment taxes) instead were $17,000?
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Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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