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UET Penalty Effective for income tax years beginning on or after January 1, 2003, the underpayment of estimated tax penalty is based on the lesser of 70% of the tax shown on the return over the estimated payments made; or 100% of the tax shown on the prior years return over the estimated payments made, if the return was for a twelve month period. However, please note that we do not have programming support for Underpayment Penalty.
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