Instructions For Form It-210 - Underpayment Of Estimated Tax By Individuals

When calculating your payment dates and the amounts to enter on line 17

Char t of Total Days Per Rate Period

of each column, apply the following rules:

Rate Period

Line 25

(a)

364

For West Virginia income tax withheld, you are considered to have

(b)

305

paid one-fourth of these amounts on each payment due date, un-

(c)

213

less you check Box C in Part 1 and show otherwise.

(d)

Include in your estimated tax payments any overpayment from your

2005 West Virginia tax return that you elected to apply to your 2006

For example, if you have an underpayment on line 23, column (a), you

estimated tax. If you filed your return by the due date (including

would enter 364 in column (a) of line 25.

extensions), treat the overpayment as a payment made on April 17,

2006.

The following line-by-line instructions apply only to column (a) of Section

B. If there is an underpayment shown in any other column on line 23,

If you file your return and pay the tax due on or before January 31,

complete lines 25 and 27 in a similar fashion.

2007, include the tax you pay with your return in column (d) of line

17. In this case, you will not owe a penalty for the payment due

Line 25 - Enter in column (a) the total number of days from April 17, 2006

January 16, 2007.

to the date of the first payment. If no payments enter 364.

Line 18 - Enter any overpayment from the previous column on line 18.

Line 26 - The daily penalty rate is equal to the annual interest rate applied

to tax underpayments divided by 364. The annual interest rate for

Line 19 - Add lines 17 and 18 in each column and enter the result on line 19.

underpayments is nine and one-half percent (9.5%) through June

30, 2007, resulting in a daily rate of .000260.

Line 20 - Add lines 22 and 23 from the previous column and enter the

result in each column.

Line 27 - Make the computation requested and enter the result. Note that

the computation calls for the “underpayment on line 23”. The amount to

Line 21 - Subtract line 20 from line 19 in each column and enter the result

use as the “underpayment” depends on whether or not a payment is

on line 21. If line 20 is equal to or more than line 19 in any column, enter

listed.

zero on line 21 in that column.

If There Is A Payment - The “underpayment” for the computation on

Line 22 - Subtract line 19 from line 20 for any column for which line 20 is

line 27 is the amount of the payment applied to the line 23 underpayment.

more than line 19; otherwise, enter zero.

If the payment is more than the underpayment, apply only an amount

equal to the underpayment and use that amount for the line 27 computa-

Line 23 - Subtract line 21 from line 16 for any column for which line 16 is

tion. If the payment is less than your underpayment, the penalty for the

more than line 21; otherwise, enter zero. If line 23 is zero for all payment

remaining underpayment will require a separate computation. Use the

periods, you do not owe a penalty. However, if you checked any box in

space at the bottom of page 24 or a separate sheet of paper to show any

PART I, you must file Form IT-210 with your return.

additional computations. If There Are No Payments - The “underpay-

ment” is the entire amount shown on line 23.

Line 24 - Subtract line 16 from line 21 for any column for which line 21 is

more than line 16; otherwise, enter zero. Be sure to enter the amount

The Following Conditions Determine If Additional Computations

from line 24 on line 18 of the next column.

Are Needed For Column (a):

The first payment was enough to reduce the underpayment to

Section B - Compute Your Penalty

zero. There are no further computations for column (a). Compute

Caution: Read the following instructions before completing Section B.

the penalty for any underpayments shown in columns (b) through

(d) on line 23.

Compute the penalty by applying the appropriate rate against each under-

payment on line 23. The penalty is computed for the number of days that

No payments. Compute the penalty for any underpayments shown

the underpayment remains unpaid.

in columns (b) through (d) on line 23.

The rates are established twice during each calendar year, on January 1

The payment did not reduce the underpayment to zero, and there

and July 1. If an underpayment remains unpaid for more than one rate

are no other payments.

period, the penalty for that underpayment may be computed using more

than one rate. The annual rate is nine and one-half percent (9.5%) from

Make one other computation for lines 25 and 27. The second computation

January 1, 2006 through June 30, 2007 and will require only one rate for

is to figure the penalty on the unpaid balance (the portion of the under-

all underpayments.

payment that remained unpaid for the entire period).

Use line 25 to compute the number of days the underpayment remains

On line 25, enter 364. This is the total number of days in the rate period.

unpaid. Use line 27 to compute the actual penalty amount by applying the

See the Chart of Total Days Per Rate Period .

proper rate to the underpayment for the number of days it was unpaid.

On line 27, make the computation and enter the result.

Each payment must be applied to the oldest outstanding underpayment. It

does not matter if you designate a payment for a later period. For ex-

Additional payments were made and the first payment did not re-

ample, if you have an underpayment for the April 17 installment period, the

duce the underpayment to zero. On line 23, list the amounts and

payment you make June 15 will first be applied to pay off the April 17

payment dates that apply to the underpayment for the installment

underpayment; any remaining portion of the payment will be applied to the

period. Compute the penalty for each amount on line 23. If an

June 15 installment.

underpayment balance remains after applying all the payments,

compute the penalty on the remaining balance for the entire rate

Also, apply the following rules:

period.

Show the West Virginia withholding tax attributable to each install-

ment due date; do not list the withholding attributable on or after

Columns (b) through (d)

January 1, 2007.

To complete columns (b) through (d), use the same procedures as for

Any balance due paid on or before April 16, 2007 with your personal

column (a). However, apply only those payments in each column which

income tax return is considered a payment and should be listed on line

have not been used in a previous column.

17, column (d). For the payment date, use the date you file your

return, or April 16, 2007, whichever is earlier.

Line 28 - Add all figures from line 27. Enter the sum on line 28 and on the

appropriate PENALTY DUE line of your personal income tax return.

-32-

Instructions For Form It-210 - Underpayment Of Estimated Tax By Individuals - 2006 Page 4

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