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Tax Underpayment Penalty: What It Is, Examples, and How to Avoid One

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Last updated 04 abril 2025
Tax Underpayment Penalty: What It Is, Examples, and How to Avoid One
An underpayment penalty is an IRS fee for failing to pay enough of your total tax liability during the year. Here’s how to determine if you owe an underpayment penalty.
Tax Underpayment Penalty: What It Is, Examples, and How to Avoid One
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