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This tax penalty is 5% of the unpaid tax for each month or part of a month that your return is late. However, it caps at 25% (5 months) of your balance. If your ... https://www.investopedia.com/terms/u/underpaymentpenalty.asp
An underpayment penalty is a fine charged by the Internal Revenue Service (IRS) when taxpayers don't pay enough of their estimated taxes due during the year. https://www.irs.gov/pub/irs-pdf/n433.pdf
The interest rate on underpayment and overpayment of taxes and the penalty for underpayment of estimated tax are as follows: The law requires us to ...
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