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Dr. C writes:

<<I'm assuming that if I convert say in, March of this year, I don't actually have to pay the tax burden till April 15 of 2001. I'm correct right ? (I hope so)>>

No, not quite. That's when your income tax return is normally due. However, you are responsible for proper withholding of those taxes throughout the year. Therefore, 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.

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