7) If estimated tax payments oqual or exceed 100% of the actual tax liability for the prior year. there is generally (assuming AGI less than or equal to Si50,000) no penalty for underpayment of D) no underpayment penalty is imposed if the estimated payments total at least 90% of the actual 9) Ifa taxpayer's Agl is greater than 5150,000, no penalty will be imposed if the taxpayer pays until the taxpayer pays the tax. The late payment penalty equals 5 percent of the amount of the tax owed for each month (or fraction of the month) that the tax is not paid. The combined maximum penalty that may be imposed for late payment and late filing (nonfraudulent) is 5 percent per month (25 percent in total). For combined penalty due to fraud, the maximum is 15 percent (up to total of 75 percent) per month. CHECK YOUR UNDERSTANDING: 1) An individual could pay 100 percent of her tax liability by the due date of her tax return and still be subject to underpayment tax penalties. Answer: TORF 2) Depending on the year, the original (extended) due date for an individual's tax return may be after April 15. Answer: Tor F 3) Depending on the year, the original (Unextended) due date for an individual's tax return may be before April 15. Answer: TORE 4) Individuals may file for and receive a six-month extension of time to file their tax return and pay their taxes without penalty. Answer: Tor F s) The late payment penalty is based on the amount of tax owed and the number of days that the tax is not paid. The maximum amount of the penalty is unlimited. Answer: Tor F 6) If an employee has more than one employer during the year, all employers must withhold federal income taxes but only one emploger must withhold FICA tnx. Answer: Torp estimated trixes. Answer: Tor F. prior year, all of the following are generally true with the exception of A) no penalty is imposed if the estimated tax is less than $1.000. due for the current year tax liability for the prior year. 8) With respect to estimated tax payments for axpayer with AGI of $150,000 or lower in the C no tinderpayment penalty is imposed if the estimated payments total at least 90% of the 15) no penalty is imposed if the individuals no tuxlibility for the prior year estimated tex poents for a current car equal to what percentage of the prior year's income C) 110% D) 120% tax liability A) 100% B) 9096