Barbara was divorced two years ago. However, the final property settlement and determination of alimony payments was not made until February 2016 because of extended litigation. Barbara received a $20,000 payment of back alimony in March 2016 and will receive monthly alimony payments of $2,000 for the period April through December 2016. Last year, Barbara's income consisted of $15,000 salary and $2,000 of taxable interest income, and her tax liability was $1,900. 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 2016 will be $1,500. Her monthly alimony payments of $2,000 are also expected to continue for an indefinite period.

In early April 2016 Barbara requests your advice regarding the payment of quarterly estimated taxes for 2016. 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.