As much as I really liked Tom Daschle's nomination for HHS secretary, this Steve Martin-like approach to taxes is just crap. I'm glad he pulled himself from consideration, as Nancy Killefer did for her OMB post. I have owned a consulting business since 1986. Here's how to do it. Deposit each check you receive into a corporate account. From that account, each month write a check equal to 33% of that month's income and put it into whatever account will give you a good return on your money without putting the principal at risk.
At the end of the year, total your deposits. That's your income. The other money is for taxes. Those need to be paid quarterly. As long as the 1099s are for the same or less than your deposits, you're good to go. Period. End. For 22 years now, I have reported more income than I have listed on the 1099s because I am not smart enough and don't have enough time to fudge my books. I figure the IRS is going to leave me alone for reporting more income than is reported to them. Cheap audit insurance. These government big shots are probably smarter than me.
Or maybe Leona Helmsley was right: "Only the little people pay taxes."