Hi everyone,
I have a "champagne problem." My company paid us our 2018 bonus in CY2019. This is the norm. Then last week, for some reason, paid us our 2019 bonus also in CY2019! Add to this, there was a mid-summer smallish bonus. The three payments were Jan 2019, August 2019, and December 2019.
All three were run as 1099's and so no withholding. I basically now face a severe and unintentional underpayment situation, and not only looking at a large tax bill but also a severe underpayment penalty.
Given that today is 12/28/2019, what are my options? Can I make an estimated lumpsum payment to the IRS before 12/31/2019 (or an extension date, if someone can tell me) and avoid this penalty?
I have never faced such an income volatility before. My income is supposed to be predictable +/- 5%.
Thank you very much.
