Underpayment

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Underpayment

The act of paying an amount under the full amount. For example, if one's mortgage payment is $600 per month but one only pays $400 for July, one has underpaid the mortgage. Underpayment is not sustainable and may lead to serious financial difficulties. However, paying what one can afford when one cannot pay the full amount may be easier for both the obligor and the obligee.
References in periodicals archive ?
For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Partnerships that have an imputed underpayment arising from such audits have the option to pay assessment at the partnership level or push the assessment out their partners for payment.
However, if the NOPPA sets forth an imputed underpayment, the partnership may request a modification for adjustments that do not result in an imputed underpayment.
Partner indemnification of partnership payments: Should the partnership agreement require the partners of the reviewed year to reimburse the partnership for imputed underpayments made by the partnership in the adjustment year when the partners for the reviewed year and the adjustment year are not the same?
After the audit program's administrative costs, underpayments paid to providers, and appeal reversals, the Medicare Recovery Audit Program returned approximately $1.
Jana Howard, assistant director of the FTB's legislative services bureau, detailed some 2005 bills affecting the profession, including AB 115, the federal conformity bill; AB 911, the amnesty clean-up bill; and SB 14, which provides an exception to the estimated tax underpayment penalty that results when a law change retroactively increases a taxpayer's estimated tax payment.
In addition, new Department of Interior regulations issued in response to the discovery of underpayments will take away the oil companies' ability to determine the royalty payment formula, instead basing it upon market value.
Their home state has recovered billions of dollars in oil underpayments.
A taxpayer who underpays his or her taxes is required to pay interest on the underpayment at a rate equal to the Federal short-term interest rate plus three percentage points.
6621(c), the increase in underpayment rate for large corporate underpayments ("two percent hot interest") in OBRA '89, increased the differential to three percent for certain corporate underpayments in excess of $100,000.
Department of Labor investigations revealed $18 million in underpayments of wages and resulted in $10 million in simple damages alone, collected from employers by the government and paid to employees.