Right. I understand that I paid the penalty for paying all at once (2000). But when I called the IRS to ask them what the penalty was for, they pulled up my records FOR THIS YEAR and noticed that I paid one amount in the 1st quarter and then paid an even larger amount for the 2nd quarter (2001). That is when the IRS guy told me that NOT paying the same (equal) amounts for EACH quarter was a no-no and I would need to send a 1022 along with my 1040 to straighten it out. Maybe he was a trainee and just as confused as I ...heheheh. Now I know that I should just pay the 4 equal amounts (based on last years income-and figured by my accountant) and put what I have extra into a interest bearing account and pay any balance I owe with it in April. No sense in giving the government money they I can use to make some interest on it..... My accountant is going to figure the difference in tax for me in November and I'll use that figure when buying some new equipment in December...in order to reduce my tax liability for April. Thanks again.