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To: GST who wrote (100517)	4/14/2000 8:39:00 AM
From: Robert Rose	Respond to of 164684

Not everyone pays on quarterly installments. The "penalty" is only the IRS interest charge (currently 9%) compounded on a daily basis and prorated quarterly based on the previous year's reported income. (I don't have the patience to explain it further....) Suffice it to say that if you expect to make more $ in the current year than previous, and if you think you can make more than 9%, you may choose to forego paying quarterly installments and instead pay a lump sum on 4/15, along with the interest "penalty." This is what I chose to do for '99, and it worked out beautifully, as I was investing $ in '99 that would have gone for estimated taxes otherwise. Beautifully that is until this recent market collapse. I must now pay enormous ST capital gains for '99 with $ that are greatly depreciated since 2/00. EDIT: At least I am by no means on margin.