Just asking to confirm that Underpayment Penalty stops when a safe harbor is met.
The person received an unexpected large distribution from mutual funds in December. Working on the form for unequal income but it looks even without it the underpayment penalty is only $11.
This link says your assumption left out one important word. That word being “generally” and is needs to be inserted between your words “Penalty” and “stops”.
IMHO the IRS rules/instructions/decisions/documentations are often just elongated versions of GOTCHYA!
a man who has paid the Piper