gindie wrote:

- quote -

If your current year witholding is as much as your total
taxes last year (110% of last year's tax if you AGI last
year was over $150,000) you wil not have an underwitholding
penalty. You can make up the difference with a "one time"
extra withholding, or increase withholding for the rest of
the year, or pay a single 1040ES installment on Jan 15,
2007. If you make the 1040ES payment you'll have to file
form 2210 and its AI Schedule to prove you shouldn't have
paid the installment earlier. In any event, you can pay
the rest of your taxes next April.

If you do nothing your penalty will only be 8% siimple
interest from January 15 until you pay your taxes on ONLY
the difference between this year's withholding and last
year's tax (or 110% of last year's tax). The amount of the
dividend make no difference.

MF

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

gindie <gindie[at]hotmail.com> wrote:

- quote -

If you will have had withheld on your W-2 form (and you can
ask for more withholdings) at least 100% of last year's tax
(110% if last year's AGI > $150,000) you will have avoided
any penalty for underwitholding.

- quote -

You can have the withholding done now or ASAP - no need to
wait.

- quote -

What mess? Just download form 2006 Form 1040ES and write
your name/address/SSN and amount you are paying, and mail it
in with your check. You don't even have to sign that form.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I work for a company that will IPO in the next couple of
weeks. This will result in a large dividend paid to the
current shareholders. I am looking for options to avoid
underpayment issues.

The obvious option I see is to increase withholding from my
paycheck for the 3-4 paychecks I would receive after the
distribution in November. However, that involves W-4
paperwork that may not be processed in a speedy fashion.

Is there any way I can just make a lump-sum payment to the
IRS, without having to mess around with estimated payment
forms, etc? This is a one-time event.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >