Failure to Make Required Estimated Payments Will Subject the Taxpayer

Multiple Choice

Failure to make required estimated payments will subject the taxpayer to a potential underpayment penalty plus interest.However,if the difference between the tax shown on the return and the amount of tax withheld for wages is less than ________,the taxpayer will not be assessed a penalty.

A) $1,250
B) $500
C) $850
D) $1,000