Instructions For Form 2210 - 2008 printable pdf download

2 0 08

Department of the Treasury

Internal Revenue Service

Instructions for Form 2210

Underpayment of Estimated Tax by Individuals, Estates, and Trusts

Section references are to the Internal Revenue Code unless

Who Must Pay the Underpayment

otherwise noted.

Penalty

General Instructions

In general, you may owe the penalty for 2008 if you did not pay

at least the smaller of:

•

What’s New—Disaster Areas

90% of the tax shown on your 2008 tax return, or

•

100% of the tax shown on your 2007 tax return (110% of that

Generally, required estimated tax payment deadlines were

amount if you are not a farmer or fisherman and the adjusted

extended for taxpayers affected by federally declared disasters.

gross income (AGI) shown on that return is more than

You will be granted a waiver of all or part of your underpayment

$150,000, or, if married filing separately for 2008, more than

of tax penalty for late payments due to such disaster. See

$75,000).

Federally declared disaster under Waiver of Penalty on page 2.

The penalty is figured separately for each installment due

Purpose of Form

date. Therefore, you may owe the penalty for an earlier due

Generally, use Form 2210 to see if you owe a penalty for

date even if you paid enough tax later to make up the

underpaying your estimated tax and, if you do, to figure the

underpayment. This is true even if you are due a refund when

amount of the penalty. If you are not required to file Form 2210,

you file your tax return. However, you may be able to reduce or

you can use it to figure your penalty if you wish to do so. In that

eliminate the penalty by using the annualized income

case, enter the penalty on your return, but do not file Form

installment method. For details, see the Schedule AI

2210.

instructions beginning on page 5.

Return. In these instructions, “return” refers to your original

Who Must File Form 2210

return. However, an amended return is considered the original

In most cases, you do not need to file Form 2210. The IRS will

return if it is filed by the due date (including extensions) of the

figure any penalty you owe and send you a bill. See The IRS

original return. Also, a joint return that replaces previously filed

Will Figure the Penalty for You below. Use the flowchart at the

separate returns is considered the original return.

top of page 1 of Form 2210 to see if you must file the form.

Exceptions to the Penalty

The IRS Will Figure the Penalty for You

You will not have to pay the penalty if either (1) or (2) applies.

1. You had no tax liability for 2007, you were a U.S. citizen

Because Form 2210 is complicated, we strongly encourage you

or resident alien for the entire year (or an estate of a domestic

to let the IRS figure the penalty. If you owe a penalty, we will

decedent or a domestic trust), and your 2007 tax return was (or

send you a bill. If you file your return by April 15, 2009, we will

would have been had you been required to file) for a full 12

not charge you interest on the penalty if you pay by the date

months.

specified on the bill.

2. The total tax shown on your 2008 return minus the

If you want us to figure the penalty for you, complete your

amount of tax you paid through withholding is less than $1,000.

return as usual. Leave the penalty line on your return blank; do

To determine whether the total tax is less than $1,000,

not file Form 2210.

complete lines 1 through 7.

See Part II of the form. If box B, C, or D is checked, you

Estates and trusts. No penalty applies to either of the

must figure the penalty yourself and attach a completed

following.

Form 2210 to your return.

•

CAUTION

A decedent’s estate for any tax year ending before the date

that is 2 years after the decedent’s death.

•

Other Methods of Figuring the Penalty

A trust that was treated as owned by the decedent if the trust

will receive the residue of the decedent’s estate under the will

We realize that there are different ways to figure the correct

(or if no will is admitted to probate, the trust primarily

penalty. You do not have to use the method used on Form 2210

responsible for paying debts, taxes, and expenses of

as long as you enter the correct penalty amount on the penalty

administration) for any tax year ending before the date that is 2

line of your return.

years after the decedent’s death.

However, if you are required to file Form 2210 because one

Special Rules for Farmers and Fishermen

or more of the boxes in Part II applies to you, you must

complete certain lines and enter the penalty on the estimated

If you meet both tests 1 and 2 below, you do not owe a penalty

tax penalty line of your return.

for underpaying estimated tax.

•

If you use the short method, check the applicable boxes in

1. Your gross income from farming or fishing is at least

Part II, complete lines 1 through 14, and enter the penalty on

two-thirds of your annual gross income from all sources for

line 17 and the applicable line of your tax return.

2007 or 2008.

•

If you use the regular method, check the applicable boxes in

2. You filed Form 1040 or 1041 and paid the entire tax due

Part II, complete lines 1 through 9 and lines 18 through 26, and

by March 2, 2009.

enter the penalty on line 35 and the applicable line of your tax

return.

See chapter 2 of Pub. 505, Tax Withholding and Estimated

•

If you use the annualized income installment method, check

Tax, for the definition of gross income from farming and fishing.

the applicable boxes in Part II, complete lines 1 through 9,

Schedule AI, and then lines 18 through 26. Enter the penalty on

If you meet test 1 but not test 2, use Form 2210-F,

line 35 and the applicable line of your tax return.

Underpayment of Estimated Tax by Farmers and Fishermen, to

Cat. No. 63610I

Instructions For Form 2210 - 2008

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