Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Might I add one additional follow-up question, just to make sure I've got my thinking straight. The IRS instructions state that a tax payer can generally avoid paying a penalty if he:

1. Owes less than $1,000 after all withholding and credits;
2. Pays at least 90% of the current taxes due; or,
3. Pays at least 100% of the taxes due for the prior year, "whichever is smaller."

I initially presumed that "whichever is smaller" applies only to #s 2 and 3. I have grown less confident in that conclusion the more I think about it. Since the penalty is ostensibly avoided if any of the above criteria is met, does the phrase apply only to all three provisions or to just the last two?
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.