All of the following regarding interest and penalties for noncompliance with IRS tax filing and estimated tax payment requirements are true, EXCEPT?

1. The accuracy-related penalty is generally 20% of the underpayment and can be increased to 30% for understatement of tax liability due to undisclosed listed transactions (certain transactions listed by the IRS as tax-shelter devices).

2. The tax penalty for underpayment of estimated tax payments can be avoided by high income taxpayers if they pay in at least 75% of the current year's tax liability or 100% of the prior year tax liability.

3. The failure to file penalty is five percent of the unpaid tax balance for each month or part thereof that the tax return is late, subject to a maximum penalty of 25% of the unpaid tax balance.

4. The failure to pay penalty is 0.5 percent of the unpaid taxes for each month or part of a month that the taxes are not paid. Max penalty is 25% of unpaid taxes.