The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/ltlt-you-must-have-filed-estimated-withholding-11767585.aspx

Subject:  Re: Can U Convert < 100% of TradIRA to a Roth Date:  1/7/2000  11:26 AM
Author:  DigbyRC Number:  17484 of 76082

<< you must have filed estimated withholding for anticipated taxes for the quarter in which the
conversion took place. If you don't, then when you file on April 15 you may owe a penalty for not withholding enough estimated taxes
for the year. Do not wait until April 15, 2001, to pay the final bill. Make the estimated payment now.>>

Ah drat and double drat. That super sucks the big one.
What kind of penalty ? Are we talking ten bucks or a thousand ???? Gosh think of all the interest the IRS would miss out on if I didn't pay till April.

Maybe I should post this question in Taxation Strategies.


Can I say, "hmmm I estimate the taxes due this quarter to be, hmmm.. A dollar!" and send that in and then just say "Hey, it was only an estimate" at the end of the year and pay the rest - the IRS has an "allowance for idiocy" clause in its code right ?

- Dr. C
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us