ANNUALIZED INCOME INSTALLMENT METHOD
A method which a taxpayer may render to eliminate or reduce any estimated tax underpayment penalty that is due. The annualized income installment method computes the installment payment that would be due in case the income minus the deductions accumulated before the settlement date were annualized. This exception to the underpayment penalty provides some relief to the taxpayers who was given an uneven or unexpected income within the year and so cannot correctly estimate their tax liability.
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