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What is the underpayment of estimated tax penalty?

April 26, 2017estimated penalty tax underpayment

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What is the underpayment of estimated tax penalty?

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This is a special penalty the IRS and the states add to a balance due when you owe more than they think you should owe. For the IRS, the limit is $1000. Kansas adds the penalty when you owe more than $200. There are some special exemptions and calculations in figuring this penalty.