Question

Which of the following statements is true? Select one: O a. The determination of whether a taxpayer is subjust to underpayment payments is made on a quarterly basis. O b. All of these statements are true. O c. For 2020 the due dates for estimated taxes will be April 15, 2020, June 15, 2020, September 15, 2020 and January 15, 2021 (unless a weekend or holiday). O d. The amount of the underpayment will be subject to a penalty.

Answer 1

Hi There,

Here my answer to the question asked.

In the above one.All 4 options are correct.

Answer is b.All of these statements are True.

a.

Yes., The determination of underpayment of taxes by tax payer will be on Quarterly basis only.The full year is divided into 4 equal parts I.e Quarterly basis where tax payer will decide how much he paid less and how much he needs to pay in next quarter.

C. Duedates of estimated tax payments for 2020 is on

January 1 – March 31	April 15 - extended to July 15th
April 1 – May 31	June 15 - Extended to July 15, 2020
June 1 – August 31	September 15
September 1 – December 31	January 15* of the following year.

Note: If the due date for payment of an estimated tax fall on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that's not a Saturday, Sunday, or legal holiday.

D. The statement is True.

The underpayment of tax will subject to penalty.

Here the tax payer may not required to pay the penalty if

If he pays almost 90% of estimated tax before and also his tax liability for the previous year is less than $1000.