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Worksheet for Form 2210, Part IV, Section B—Figure the Penalty

Keep for Your Records

Complete Rate Period 1 of each column before going to the next column; then go to Rate Period 2 in the same manner. If multiple estimated

tax payments are applied to the underpayment amount in a column of line 1a, you will need to make more than one computation for that

column.

Payment Due Dates

(a)

(b)

(c)

(d)

4/15/10

6/15/10

9/15/10

1/15/11

1a Enter your underpayment from Part IV, Section A, line 25 . . 1a

1b Date and amount of each payment applied to the

underpayment in the same column. Do not enter more than

the underpayment amount on 1a for each column (see

instructions).

Note. Your payments are applied in the order made first to

any underpayment balance in an earlier column until that

underpayment is fully paid.

Rate Period 1: April 16, 2010 — December 31, 2010

Computation starting dates for this period . . . . . . . . . . . . . 2

4/15/10

6/15/10

9/15/10

Days:

Number of days from the date on line 2 to the date the

amount on line 1a was paid or 12/31/10, whichever is earlier 3

Underpayment

Number of days

× .04

on line 1a

on line 3

365

Rate Period 2: January 1, 2011 — April 15, 2011

Computation starting dates for this period . . . . . . . . . . . . . 5

12/31/10

1/15/11

Days:

Number of days from the date on line 5 to the date the

amount on line 1a was paid or 4/15/11, whichever is earlier

Underpayment

Number of days

× .03

on line 1a

on line 6

365

Penalty. Add all amounts on lines 4 and 7 in all columns. Enter the total here and on line 27 of Part

8 $

IV, Section B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

•

If you file your return and pay the tax due by January 31,

underpayment shown in Section A, line 25. The penalty is

2011, include on line 19, column (d), the amount of tax you pay

figured for the number of days that each underpayment remains

with your tax return. In this case, you will not owe a penalty for

unpaid.

the payment due on January 15, 2011.

Your payments are applied first to any underpayment

Example 1. You filed your 2009 tax return on June 1, 2010,

balance on an earlier installment. It does not matter if you

showing a $2,000 refund. You elected to have $1,000 of your

designate a payment for a later period. See Example 2, below.

2009 overpayment applied to your 2010 estimated tax

The rates are established at various times throughout the

payments. In 2010, you had $4,000 of federal income tax

withheld from wages. You also made $500 estimated tax

year. For the period covered by the 2010 Form 2210, there are

payments on 9/15/10 and 1/15/11. On line 19, column (a), enter

two rates in effect over two rate periods. (See the Penalty

Worksheet above.)

$2,000 ($1,000 withholding + $1,000 overpayment). In column

(b) enter $1,000 (withholding), and in columns (c) and (d), enter

Use lines 3 and 6 of the Penalty Worksheet to show the

$1,500 ($1,000 withholding + $500 estimated tax payment).

number of days an underpayment remained unpaid. Use lines 4

Line 25

and 7 to figure the actual penalty amount by applying the

appropriate rate to an underpayment for the number of days it

If line 25 is zero for all payment periods, you do not owe a

remained unpaid.

penalty. But if you checked box C or D in Part II, you must file

Form 2210 with your return. If you checked box E, you must file

Example 2. You had a $500 underpayment remaining after

page 1 of Form 2210 with your return.

your April 15 payment. The June 15 installment required a

payment of $1,200. On June 10, you made a payment of

In certain circumstances, the IRS will waive all or part of the

$1,200 to cover the June 15 installment. However, $500 of this

underpayment penalty. See Waiver of Penalty on page 2.

payment is applied first to the April 15 installment. The penalty

Section B—Figure the Penalty

for the April 15 installment is figured from April 15 to June 10

(56 days). The amount remaining to be applied to the June 15

Use the Penalty Worksheet above to figure your penalty for

each period by applying the appropriate rate against each

installment is $700.

-4-

Instructions for Form 2210

Instructions For Form 2210 - Underpayment Of Estimated Tax By Individuals, Estates, And Trusts - 2010 Page 4

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