Which situation does not exempt an individual from the underpayment penalty?

To understand why the chosen answer is correct, it’s important to look at the criteria that typically exempt an individual from the underpayment penalty. The IRS generally provides exemptions based on previous year tax obligations and the current year's withholding or estimated payments.

In the situation described, an individual who owed $2,000 in the previous year and $1,200 in the current year yet got married does not qualify for an exception. The underpayment penalty often applies if you owe more than a certain amount in taxes after subtracting withholding and credits, even if previous year amounts could influence exemptions. In this case, the change in marital status does not automatically result in an exemption from underpayment penalties, especially since the individual’s tax liability has dropped significantly.

Other scenarios described might involve circumstances or thresholds that the IRS recognizes as grounds for exemption. For instance, if someone owed nothing previous year and a reasonable amount this year, their situation might exempt them. Moving from a higher tax bill to a lower one without other mitigating factors does not qualify for an exemption.

Thus, the factor of marital status alone, without sufficient tax implications, does not provide a valid basis for avoiding the underpayment penalty in this scenario.