Reply To: Avoid penalties on failure to pay proper estimatd tax

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#8122
kaneohe
Participant

IRS assumes that income is received evenly during the yr and wants to see your estimated payments to be the same. If they are not, IRS wants you to prove late payments were because income came late in the yr.

For some reason, IRS treats withholding as more special than estimated payments and assumes they were received evenly during the yr which matches their assumption about the timing on income.