The US tax system requires you to pay taxes-as-you-go or as income is earned – either through withholding, estimated quarterly payments, or a combination of both. If you fail to pay the correct amount of taxes throughout the year, the Internal Revenue Service (IRS) may send you a penalty notice for tax underpayment. What is… Continue reading Underpayment of Estimated Tax Penalty: What You Need to Know and How to Avoid It