A contractor that fails to make required quarterly estimated tax payments to the IRS during the year is most likely to face:
Explanation
IRC §6654 charges an addition to tax when too little was paid in through estimated instalments during the year, and the charge is computed quarter by quarter on the shortfall, so paying in full with the April return does not cure it. Licence status is a CSLB matter and does not turn on federal tax timing. Bonding limits are the surety's own credit decision. And the method of accounting is chosen under IRC §446 and changed only with IRS consent, never as a penalty.
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