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In this episode, we investigate and analyze tax penalties. We discuss how you can avoid the most common tax penalty - underpayment penalties - by taking advantage of the "safe harbor" provisions. Making sure you avoid tax penalties is an important part of tax planning. Through paying estimated taxes and through making correct tax witholdings, you can work to avoid having to pay underpayment penalties.
By Philip Mock, CFA®, CFP®In this episode, we investigate and analyze tax penalties. We discuss how you can avoid the most common tax penalty - underpayment penalties - by taking advantage of the "safe harbor" provisions. Making sure you avoid tax penalties is an important part of tax planning. Through paying estimated taxes and through making correct tax witholdings, you can work to avoid having to pay underpayment penalties.