Pam's 2012 income tax liability was $23,000. Her 2013 AGI did not exceed $150,000. On April 2, 2014, Pam, a calendar year taxpayer, files her 2013 individual return, which indicates a $30,000 income tax liability (before reduction for withholding). In addition, the return indicates self-employment taxes of $2,600. Taxes withheld from Pam's salary total $20,000; she has paid no estimated taxes.
a. Will Pam owe a penalty for not paying estimated taxes? Explain.
b. What amount (if any) per quarter is subject to the penalty? For what period will the penalty be imposed for each quarter's underpayment?
c. How would your answers to Parts a and b change if Pam's 2013 tax liability (including self-employment taxes) instead were $17,000?