Barbara was divorced in 2010. However, the final property settlement and determination of alimony payments was not made until February 2013 because of extended litigation. Barbara received a $20,000 payment of back alimony in March 2013 and will receive monthly alimony payments of $2,000 for the period April through December 2013. Last year, Barbara's income consisted of $15,000 salary and $2,000 of taxable interest income. She used the standard deduction and had no dependents. In 2012, Barbara's tax liability was $1,900. In 2013, she expects to continue working at an annual salary of $15,000 and will have $2,000 of interest income. Federal income taxes withheld from her salary in 2013 will be $1,500. Her monthly alimony payments of $2,000 are also expected to continue for an indefinite period.
In early April 2013 Barbara requests your advice regarding the payment of quarterly estimated taxes for 2013. Prepare a memo to your client that discusses these requirements, including any possible penalties for not making quarterly payments and nontax issues such as cash-flow and investment income decisions.