How can this taxpayer avoid the situation


A taxpayer receives a $40,000 capital gains distribution in December from a mutual fund. Assuming no estimated tax payments were made during the year and his only withholdings were from his W-2, what can the taxpayer do to avoid an underpayment penalty? How can this taxpayer avoid this situation in future years?

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Accounting Basics: How can this taxpayer avoid the situation
Reference No:- TGS095460

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