### Question
What does required annual payment mean?


### Answer
**Required annual payment** has the following meaning in *26 U.S.C. § 6654*:

> the lesser of—



(i) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year), or



(ii) 100 percent of the tax shown on the return of the individual for the preceding taxable year

#### Citation:
  - *26 U.S.C. § 6654*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 68-ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES > Subchapter A-Additions to the Tax and Additional Amounts > PART I-GENERAL PROVISIONS**

