Underpayment penalties are a common concern for taxpayers, and many are unaware of how substantial they can be. These penalties are assessed by the Internal Revenue Service (IRS) when taxpayers fail to pay enough of their tax liability through withholding or estimated tax payments throughout the tax year.

This article explores some of the commonly encountered situations that could have unexpected results when answering the question; "What income is Taxable?".

Most of the tax changes made by TCJA will expire after 2025. This will impact long range tax planning and result in a mixed bag of tax increases and cuts.