I have been hearing from some others that capital gains (say, from the stock market) of a decent size need to be reported to the IRS when they occur, in order to adjust the withholding for the remainder of the year. Basically, the IRS wants to get their money as evenly as possible across the year, not in one lump sum come tax season. Otherwise, they'll charge you a penalty of some sort (in interest). Is this true?
Basically, my only withholding is set up for my regular salary. But I just happened to have done pretty well on the stock market as of late (and sold, realizing these positions). Do I need to go alter my withholding for the remainder of the year, in order to account for this (unexpected) capital gain?
Thanks in advance!