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Department of the Treasury

Internal Revenue Service

Instructions for Form 2210

Underpayment of Estimated Tax by Individuals, Estates, and Trusts

See Part II of the form. If box B,

Return. In these instructions, “return”

General Instructions

C, or D is checked, you must

refers to your original return. However,

Section references are to the Internal

figure the penalty yourself and

an amended return is considered the

CAUTION

Revenue Code.

attach a completed Form 2210 to your

original return if it is filed by the due

return.

date (including extensions) of the

What’s New

original return. Also, a joint return that

Other Methods

•

replaces previously filed separate

If you were affected by Hurricane

returns is considered the original return.

Katrina, the due dates for the

We realize that there are different ways

September 15, 2005, and January 17,

to figure the correct penalty. You do not

Exceptions to the Penalty

2006, required installments are both

have to use the method prescribed by

You will not have to pay the penalty if

extended to February 28, 2006. See

Form 2210 as long as you enter the

either 1 or 2 applies.

Hurricane Relief on page 2.

correct penalty amount on the penalty

•

1. You had no tax liability for 2004,

For certain taxpayers affected by

line of your return.

you were a U.S. citizen or resident for

Hurricane Katrina, the due dates for the

However, if you are required to file

the entire year (or an estate of a

September 15, 2005, and January 17,

Form 2210 because one or more of the

domestic decedent or a domestic trust),

2006, required installments are both

boxes in Part II applies to you, you

and your 2004 tax return was (or would

extended to August 28, 2006. See

must complete certain lines.

•

have been had you been required to

Hurricane Relief on page 2.

If you use the short method, you

•

file) for a full 12 months.

If you were affected by Hurricane

must check the applicable boxes in

2. The total tax shown on your 2005

Rita or Wilma, the due date for the

Part II, complete lines 1 through 14,

return minus the amount of tax you paid

January 17, 2006, required installment

and enter the penalty on line 17.

•

through withholding is less than $1,000.

is extended to February 28, 2006. See

If you use the regular method, you

To determine whether the total tax is

Hurricane Relief on page 2.

must check the applicable boxes in

less than $1,000, complete lines 1 – 7.

Part II, complete lines 1 through 9 and

Purpose of Form

lines 18 through 26, and enter the

Estates and trusts. No penalty applies

penalty on line 31.

Generally, use Form 2210 to see if you

to either of the following.

•

If you use the annualized income

owe a penalty for underpaying your

A decedent’s estate for any tax year

installment method, you must check the

estimated tax and, if you do, to figure

ending before the date that is 2 years

the amount of the penalty. If you are

applicable boxes in Part II, complete

after the decedent’s death.

•

not required to file Form 2210, you can

lines 1 through 9, Schedule AI, and

A trust that was treated as owned by

lines 18 through 26, and enter the

use it to figure your penalty if you wish

the decedent if the trust will receive the

penalty on line 31.

to do so. Enter the penalty on your

residue of the decedent’s estate under

return, but do not file Form 2210.

the will (or if no will is admitted to

Who Must Pay the

probate, the trust primarily responsible

Who Must File Form

for paying debts, taxes, and expenses

Underpayment Penalty

of administration) for any tax year

2210

In general, you may owe the penalty for

ending before the date that is 2 years

2005 if you did not pay at least the

In most cases you do not need to file

after the decedent’s death.

smaller of:

Form 2210. The IRS will figure any

•

Special Rules for Farmers

90% of the tax shown on your 2005

penalty you owe and send you a bill.

See The IRS Will Figure the Penalty for

tax return, or

and Fishermen

•

You below. Read the chart at the top of

The tax shown on your 2004 tax

If you meet both tests 1 and 2 below,

return (110% of that amount if you are

page 1 of Form 2210 to see if you need

you do not owe a penalty for

not a farmer or fisherman and your

to file Form 2210.

underpaying estimated tax.

adjusted gross income (AGI) shown on

The IRS Will Figure the

1. Your gross income from farming

that return is more than $150,000, or, if

and fishing is at least

of your annual

married filing separately for 2005, more

Penalty for You

gross income from all sources for 2004

than $75,000).

or 2005.

Because Form 2210 is complicated, we

The penalty is figured separately for

2. You filed Form 1040 or 1041 and

strongly encourage you to let us figure

each installment due date. Therefore,

paid the entire tax due by March 1,

the penalty. If you owe it, we will send

you may owe the penalty for an earlier

2006.

you a bill. And as long as you file your

due date even if you paid enough tax

return by April 17, 2006, we will not

later to make up the underpayment.

See Pub. 505, Tax Withholding and

charge you interest on the penalty if

This is true even if you are due a refund

Estimated Tax, for the definition of

you pay by the date specified on the

when you file your tax return. However,

gross income from farming and fishing.

bill.

you may be able to reduce or eliminate

the penalty by using the annualized

If you want us to figure the penalty

for you, complete your return as usual.

income installment method. See the

Leave the penalty line on your return

Schedule AI instructions beginning on

page 6 for details.

blank; do not file Form 2210.

Cat. No. 63610I

Instructions For Form 2210 - Underpayment Of Estimated Tax By Individuals, Estates, And Trusts - 2005

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