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An IRS underpayment penalty can be caused by various factors, including underestimating your income, failing to make adequate payments, or a change in your tax situation that went unaddressed. Life events such as job loss or significant income fluctuations can also contribute. Staying informed through IRS Instruction 843 can help you mitigate these risks and understand your obligations more clearly. Consider using resources like US Legal Forms to stay on track with your tax responsibilities.
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