Form Ri-2210c - Underpayment Of Estimated Tax By Composite Filers

PURPOSE OF THIS FORM

September 16, 2006 and January 15, 2007.

Entities should use this form to determine if their income tax was sufficiently prepaid

If you filed your return on or before February 15, 2007 and paid the tax balance

throughout the year by having Rhode Island tax withheld or by paying Rhode Island esti-

in full, then enter that amount in column D. This only applies to those taxpayers

mated tax; if not, a charge may be imposed on the underpayment of the taxes. Complete

who either were not required to make a Rhode Island estimated tax payment

Part 1 of this form to determine if the payment of the charge may be avoided.

prior to the January 15, 2007 installment date or included their January 15,

2007 installment payment with the tax balance paid on or before February 15,

PART 1 - REQUIRED ANNUAL PAYMENT

2007.

Line 1 - Enter your 2006 Rhode Island tax from RI-1040C, line 15.

Line 17 - Subtract line 16 from line 15 for any underpayments. Subtract line 15 from line

Line 2 - Enter 80% of the amount shown on line 1

16 for any overpayments. Any overpayments on line 17 should be used to increase

Line 3 - Enter the amount of Nonresident real estate withholding and Nonresident with-

the amount entered on line 16 for the next installment period. Any underpayment on

holding received from pass-through entities for 2006 from RI-1040C, lines 17 and 18.

line 17 should be used to decrease the amount on line 16 for the next installment peri-

Line 4 - Subtract line 3 from line 1. If the result is $250.00 or less you do not owe any

od. However, if you entered amounts on line 14, annualized income installments, and

amount and need not complete the rest of this form.

the amounts on line 17 are zero ($0) or less for all installment periods, then enter zero

Line 5 - Enter your 2005 Rhode Island tax - RI-1040C, line 14. If you had no federal tax

($0) on line 21 and file this form with your return.

liability for 2005, then enter zero ($0).

Line 6 - Enter the smaller of line 2 or line 5 (including zero). If line 6 is zero, you do not

PART 4 - HOW TO FIGURE THE CHARGE

owe any amount and need not complete the rest of this form. However, you must

Line 18 - Column A: Enter the date you paid the tax balance due for the current install-

attach this form to your Rhode Island return.

ment or 6/15/2006, whichever is earlier. Column B: Enter the date you paid the tax

balance due for the current installment or 9/15/2006, whichever is earlier. Column C:

PART 2 - SHORTCUT METHOD

Enter the date you paid the tax balance due for the current installment or 12/31/2006,

Line 7 - Enter the amount from line 6.

whichever is earlier. Column D: Enter the date you paid the tax balance due for the

Line 8 - Enter the amount of estimated tax paid, Nonresident real estate withholding and

current installment or 4/15/2007, whichever is earlier.

Nonresident withholding received from pass-through entities for 2006 from RI-1040C,

Line 19A - Enter the number of days from the installment due date to the date of payment

lines 16, 17 and 18.

or the due date of the next installment, whichever is earlier.

Line 9 - Subtract line 8 from line 7.

Line 19B - Compute the charge using the applicable interest rates and number of days

Line 10 - Multiply line 9 by 10.7795% (0.107795)

times underpayment entered on line 17 for each installment period. Divide the num-

Line 11 - If you paid the tax balance due after 4/15/07, enter zero ($0). If you paid the tax

ber of days from line 19A by the total number of days in the year times the applicable

balance due before 4/15/07, multiply the number of days paid before 4/15/07 by the

interest rate times the amount of the underpayment on line 17 for each installment.

amount on line 9 and by .00030 and enter the result on line 11.

Line 20A - Enter the number of days from October 1, 2006 to the date of payment or

Line 12 - Subtract line 11 from line 10 - enter here and in the space provided on

January 15, 2007, whichever is earlier.

RI-1040C, line 22.

Line 20B - Compute the charge using the applicable interest rates and number of days

times underpayment entered on line 17 for each installment period. Divide the num-

PART 3 - FIGURE YOUR UNDERPAYMENT

ber of days from line 20A by the total number of days in the year times the applicable

Line 13 - Divide the amount shown on line 6 by four (4) and enter the result in each col-

interest rate times the amount of the underpayment on line 17.

umn.

Line 21A - Enter the number of days from January 15, 2007 to the date of payment or

Line 14 - If your income varies during the year, you may complete the annualized income

April 15, 2007, whichever is earlier.

installment worksheet. However, if you complete and use line 14 for any installment

Line 21B - Compute the charge using the applicable interest rates and number of days

you must complete it and use it for all installments.

NOTE: COMPLETE LINES 15-17

times underpayment entered on line 17 for each installment period. Divide the num-

FOR ONE COLUMN BEFORE COMPLETING THE NEXT COLUMN.

ber of days from line 21A by the total number of days in the year times the applicable

Line 15 - Enter the amount from line 13 (or from line 14, if line 14 was completed).

interest rate times the amount of the underpayment on line 17.

Line 16 - You are considered to have paid Rhode Island withholding tax evenly during the

Interest rates to be used are 12% per annum from January 1, 2006 to

year unless you can show otherwise. Therefore, you are considered to have paid

September 30, 2006 and 18 % per annum from October 1, 2006 to

one-fourth of your Rhode Island withholding on each installment due date. Divide the

December 31, 2007.

total amount withheld by 4 and enter the results in each column. Enter the estimated

Line 22 - Add the amounts from lines 19B, 20B and 21B in all columns and enter the total

taxes paid that were for 2006 tax year plus any portion of your overpayment from

here. Include this amount with your tax balance payment and attach this form to your

2005, which you elected to be applied to 2006. Enter in column A those payments

return. If your Rhode Island tax return has previously been filed, then attach your

made on or before April 15, 2006, in column B those payments made between April

check to this form and mail it to the RI Division of Taxation, One Capitol Hill,

16, 2006 and June 15, 2006, in column C those payments made between June 16,

Providence, RI 02908-5806.

2006 and September 15, 2006, and in column D those payments made between

PART 5

ANNUALIZED INCOME INSTALLMENT WORKSHEET

01/01/06

IMPORTANT: Complete one column lines 23-33 before completing the next

column.

03/31/06

05/31/06

08/31/06

12/31/06

23.

Figure actual taxable income.............................................................................

2.4

1.5

24.

Annualization amounts.......................................................................................

25.

Multiply the amount on line 23 by the indicator on line 24................................

26.

Figure the Rhode Island tax on the amount on line 25......................................

20%

40%

60%

80%

27.

Applicable percentage........................................................................................

28.

Multiply the amount on line 26 by the applicable percentages on line 27.........

29.

Enter the combined amount from line 33 for all preceding periods...................

30.

Subtract line 29 from line 28 (not less than zero)..............................................

Enter the amount from RI-2210C, page 1, line 13 for the period plus the

31.

amount from line 32 of this worksheet for the preceding period........................

If line 31 is more than line 30, SUBTRACT line 30 from line 31,

32.

OTHERWISE enter zero....................................................................................

33.

Enter the smaller of line 30 or line 31 here and on page 1, line 14..................

Page 2

Form Ri-2210c - Underpayment Of Estimated Tax By Composite Filers - 2006 Page 2

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