Which of the following statements is false?
a. If an individual fails to pay estimated taxes for a year, there is no underpayment penalty due under any circumstances if the balance of tax due at filing is less than $1,000.
b. If an individual files a tax return with a zero tax liability in the prior year, the individual must pay in at least 90% of the current year's tax to avoid underpayment penalties, as the ability to use the 100% of prior year tax is lost.
c. If tax payments are withheld from payroll checks, regardless of the dollar amounts withheld at any particular time throughout the year, the payments are deemed to have been paid evenly throughout the year.
d. The Internal Revenue Service may waive the penalty for underpayment of taxes if the failure to pay was due to casualty, disaster, illness, or death of the taxpayer.
The answer is B but I thought that if you had zero tax liability in the prior year, this would not satisfy as an estimated tax payment method. Can someone please explain? Unless I'm reading it incorrectly, I think that the statement for B is true and not false.
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