Question

What penalties apply to the underpayment of estimated​ taxes? The late payment of the remaining tax​ liability? What penalties apply to the underpayment of estimated​ taxes? A.

A deductible penalty applies if a corporation does not deposit its required estimated tax installment on or before the due date for that installment. The IRS assesses interest if any remaining tax due is not paid by the due date shown for a properly extended corporate tax return.

B. A deductible penalty applies if a corporation does not deposit its required estimated tax installment on or before the due date for that installment. The IRS assesses interest if any remaining tax due is not paid by the original due date for the corporate tax return.

C. A nondeductible penalty applies if a corporation does not deposit its required estimated tax installment on or before the due date for that installment. The IRS assesses interest if any remaining tax due is not paid by the due date shown for a properly extended corporate tax return.

D. A nondeductible penalty applies if a corporation does not deposit its required estimated tax installment on or before the due date for that installment. The IRS assesses interest if any remaining tax due is not paid by the original due date for the corporate tax return.

Answer 1

A nondeductible penalty applies if a corporation does not deposit its required estimated tax installment on or before the due date for that installment. The IRS assesses interest if any remaining tax due is not paid by the original due date for the corporate tax return

A late payment penalty​ (failure-to-pay penalty) applies if the corporation fails to pay the tax on time. If the corporation requests an extension of time to file its tax​ return, the amount of tax shown on the request for extension or the amount of tax paid by the original due date must be at least​ 90% of the tax shown on its Form 1120 to avoid a late payment penalty.