Avoiding (and Understanding) the Underpayment Penalty
Like Ben Franklin said, taxes are one of the two things in life that can’t be avoided. While Franklin’s adage definitely applies to most types of taxes, an underpayment penalty is one tax that you can easily eliminate with some quick planning and simple math. Let’s take a look at how you can take advantage of the IRS’s “safe harbor” rules to make sure you don’t get hit with an underpayment penalty next April. What is the underpayment penalty? Uncle Sam (and state governments)
