So, this is the work around, this is classified as a withholding not an estimated payment, so a one-time distribution with 100% withheld should work and eliminate the need for quarterly estimated payments. No matter when in the tax year the distribution and withholding take place. Even if the amount also covers taxable CD income distributed monthly??
Some people may have gotten away with this (power to you!), but it is not what the IRS says. Here is a summary from Turbo Tax:
Myth 1: You can pay your taxes in a lump sum at the end of the year
One of the more serious misconceptions taxpayers often have is that they can just pay their taxes in one lump sum at the end of the year. It's a mistake to think the IRS is OK with an end-of-year payment.
If you owe more than $1,000, the IRS wants you to pay your tax throughout the year.
Any missed payment will typically result in penalties and interest.
Waiting until the end of the year to file and pay taxes may lead to other financial issues if you fail to reserve enough funds to satisfy your tax debt.
We cover how to pay quarterly estimated taxes here.
Myth 2: Missing a estimated quarterly taxes payment deadline is fine as long as you pay on the next deadline
If you have to make estimated tax payments, following the schedule is important.
Missing quarterly deadlines, even by one day, can mean accruing penalties and interest.
If you miss a payment deadline, your best bet is to send your payment as soon as you can.
You can also appeal IRS penalties. The IRS would rather collect tax payments than collect penalty payments, so penalties you incur might be forgiven.