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Individual Underpayment of Estimated Tax Form

Individual Underpayment of Estimated Tax Form

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hi i'm fuk with alphabet group and today we're going to talk about estimated tax penalties for estimated tax penalties also known as underpayment penalties what this is this is a penalty during the year so going through the slides making sure that everyone knows that this is actually different from the late payment penalty the late filing penalty and interest so all these penalties are usually penalties incurred after the due date of the tax return while the estimated tax penalty is actually the penalty you incur throughout the year for not paying enough taxes so the way the irs works is that they want you to pay taxes as you make money so it's a pay-as-you-go system so as you're making money throughout the year they want you to to pay the taxes that you owe on that money you're making and the way they do this is by saying that okay if you made a certain amount between january and march they're going to want you to make the tax payment on

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