I would rather keep the tax dollars in an interest bearing account all year and pay the amount I owe when they are due.
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No. The United States income tax system is a pay-as-you-go tax system, which means that you must pay income tax as you earn or receive your income during the year. Generally, the penalties and interest are at a higher rate than what the bank pays. Per Tax Topics - Topic 306 Penalty for Underpayment of ... - IRS.gov
Generally, taxpayers should make estimated tax payments in four equal amounts to avoid a penalty. However, if you receive income unevenly during the year, you may be able to vary the amounts of the payments to avoid or lower the penalty by using the annualized installment method. Use Form 2210 (PDF), Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you owe a penalty for underpaying your estimated tax.
The law allows the IRS to waive the penalty if:
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