Tax Drill - Estimated Taxes Complete the following statements regarding failure to pay estimated taxes. The penalty regarding failure to pay estimated income taxes is not imposed if the tax due for the year (less amounts withheld and credits) is less than $ X for corporations and s X for all other taxpayers. . . An Individual's underpayment of estimated tax is the difference between the estimates that were paid and the least of: X % of the current-year tax, X % of the prior-year tax (the tax year must have been a full 12 months, and a return must have been filed), and X % of the tax that would be due on an annualized Income computation for the period running through the end of the quarter. . Feedback Check My Work A penalty is imposed for a failure to pay estimated Income taxes. The penalty applies to individuals and corporations and rate of interest in effect for deficiency assessments. The penalty also applies to trusts and certain estates that are require estimated tax payments