Last year was a very good year for me (financially). In addition to my regular job, I did some consulting for two developers on two large, high-profile projects which turned out quite nicely. And the developers paid me some good money as a "contractor".
As you know, you are supposed to make quarterly estimated tax payments if you aren't withholding enough. But I was so busy last year, I didn't have the chance. So, on April 15th, I sent a check to the IRS for $24,000 with my income tax form, since I didn't withhold enough during the year.
So, I get a letter from the IRS in July, saying that I did not pay the proper estimated tax, and now I need to pay a "penalty".
So, what is my "penalty" for not paying $24,000 in estimated taxes? $192. I mean, like, seriously?