Anna does not make quarterly estimated tax payments even though she has substantial amounts of income that are not subject to withholding. In 2012, Anna's tax liability was $18,000. In 2013, Anna's actual tax liability is $30,000, and $18,200 was withheld from her salary. Anna's AGI for 2012 was $135,000.
a. Is Anna subject to the underpayment penalty? Why?
b. If Anna's withholdings were only $15,000, would she be subject to the underpayment penalty? Why?
c. If Anna is subject to an underpayment penalty, can she deduct this amount as interest? Explain.