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To: Amy J who wrote (95133)	1/6/2000 1:31:00 PM
From: Gerald Walls	Respond to of 186894

Didn't know that. Can you put the last few paychecks towards tax payments using the "combined" approach you described, like you can do with the pure withholding method, for a Q1 gain? That's the way this layman understands it, but if you're going to try this strategy you should get a professional answer.

To: Amy J who wrote (95133)	1/6/2000 1:59:00 PM
From: Gary G. Withrow	Respond to of 186894

RE: penalties and interest I believe that as long as you have paid 100% of the tax that you owed in the previous year, or 90% of the tax due in the current year, either by withholding or estimated tax payments, no penalty or interest is due. The interest rate is variable and is set each quarter. The IRS used to charge a flat 6%, but when interest rates went sky high too many people decided that they'd rather pay 6% to the IRS than 16% to a bank. At one time I remember the IRS rate was up to 16% and I was paying it plus a 4% interest penalty! Damn those abusive tax shelters that don't work out. Gary