- A penalty for not paying enough total estimated tax and withholding. To avoid underpayment penalties, you can pay a percentage of last year's tax due or of the current year's expected tax due. The taxes may be paid in the form of combined estimated and withholding tax payments.
fine, disciplinary action
Related Terms and Acronyms
- Tax Deferral — Definition,
- The postponement of taxes to a later year, usually by recognizing income or a gain at a later time. Remember, this only delays your tax liability; it doesn't eliminate it.
- Tax Refund — Definition,
- To receive money back from the government.