[pia ach]

How much is the penalty for underpayment?

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[OnMyWay732]

It's not really a penalty as much as it is interest on the amount due. Not sure of the exact amount though

AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81

DONE!!!!

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[Anonymous]

1/2 per month? Does that sound right?

[pia ach]

Cannot find anything from the internet, apart from the suggestion that it is a very tricky calculation and let the IRS handle it !

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[taxgeek83]

https://www.irs.gov/publications/p505/ch04.html

Looks like it's 3%. In real life, you're right. Let the IRS calculate it – a lot easier than trying to figure it out yourself and then getting into an overage/underage situation.

[san4596]

In real life, you let the software you use calculate the underpayment penalty, and the interest rate changes monthly sometimes.

If you are overpaid for the year, you can still have penalties & interest due for not paying the correct ES payments. However, you can get out of them if the bulk of income tax due was incurred in later quarters, and you made ES payments according to that income.

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[Author]

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