Estimated tax vs. penalties

[cbloom]

I was just looking at paying my estimated tax installments (late, I know), and I see that if you don't what you get is roughly a 6% APR penalty on the amount you didn't pay. So, if you had your money in something that returned > 6%, you'd be better off just not paying the estimate and instead paying the penalty at the end of the year, right?

Even if your return's not that good, seems nice to just pay at the end so that I get to keep the cash liquid.

[BigBiceps]

The 6% you quote is the interest.

The penalty is usually not assessed unless it is deliberate (THIS IS ON TOP OF THE INTEREST). So if you are not paying your estimates in good faith that could be constituted as deliberate. I don't know because I pay mine.