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Department of the Treasury

Internal Revenue Service

Instructions for Form 2210

Underpayment of Estimated Tax by Individuals, Estates, and Trusts

•

If you use the regular method, check

A decedent’s estate for any tax year

Section references are to the Internal

the applicable boxes in Part II, complete

ending before the date that is 2 years

Revenue Code unless otherwise noted.

lines 1 through 9 and lines 18 through 26,

after the decedent’s death.

General Instructions

•

and enter the penalty on line 31.

A trust that was treated as owned by

•

If you use the annualized income

the decedent if the trust will receive the

installment method, check the applicable

residue of the decedent’s estate under

Purpose of Form

boxes in Part II, complete lines 1 through

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

Generally, use Form 2210 to see if you

9, Schedule AI, and lines 18 through 26,

the trust primarily responsible for paying

owe a penalty for underpaying your

and enter the penalty on line 31.

debts, taxes, and expenses of

estimated tax and, if you do, to figure the

administration) for any tax year ending

amount of the penalty. If you are not

Who Must Pay the

before the date that is 2 years after the

required to file Form 2210, you can use it

decedent’s death.

Underpayment Penalty

to figure your penalty if you wish to do so.

In that case, enter the penalty on your

Special Rules for Farmers and

In general, you may owe the penalty for

return, but do not file Form 2210.

Fishermen

2007 if you did not pay at least the

smaller of:

If you meet both tests 1 and 2 below, you

Who Must File

•

90% of the tax shown on your 2007 tax

do not owe a penalty for underpaying

Form 2210

return, or

estimated tax.

•

100% of the tax shown on your 2006

In most cases, you do not need to file

1. Your gross income from farming

tax return (110% of that amount if you are

Form 2210. The IRS will figure any

and fishing is at least two-thirds of your

not a farmer or fisherman and the

penalty you owe and send you a bill. See

annual gross income from all sources for

adjusted gross income (AGI) shown on

The IRS Will Figure the Penalty for You,

2006 or 2007.

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

below. Use the chart at the top of page 1

2. You filed Form 1040 or 1041 and

married filing separately for 2007, more

of Form 2210 to see if you need to file

paid the entire tax due by March 3, 2008.

than $75,000).

Form 2210.

The penalty is figured separately for

See chapter 2 of Pub. 505, Tax

The IRS Will Figure the

each installment due date. Therefore, you

Withholding and Estimated Tax, for the

may owe the penalty for an earlier due

definition of gross income from farming

Penalty for You

date even if you paid enough tax later to

and fishing.

make up the underpayment. This is true

Because Form 2210 is complicated, we

If you meet test 1 but not test 2, use

even if you are due a refund when you file

strongly encourage you to let the IRS

Form 2210-F, Underpayment of

your tax return. However, you may be

figure the penalty. If you owe it, we will

Estimated Tax by Farmers and

able to reduce or eliminate the penalty by

send you a bill. If you file your return by

Fishermen, to see if you owe a penalty. If

using the annualized income installment

April 15, 2008, we will not charge you

you do not meet test 1, use Form 2210.

method. For details, see the Schedule AI

interest on the penalty if you pay by the

instructions beginning on page 4.

date specified on the bill.

Waiver of Penalty

Return. In these instructions, “return”

If you want us to figure the penalty for

If you have an underpayment, all or part

refers to your original return. However, an

you, complete your return as usual. Leave

of the penalty for that underpayment will

amended return is considered the original

the penalty line on your return blank; do

be waived if the IRS determines that:

return if it is filed by the due date

•

not file Form 2210.

In 2006 or 2007, you retired after

(including extensions) of the original

reaching age 62 or became disabled, and

See Part II of the form. If box B, C,

return. Also, a joint return that replaces

your underpayment was due to

or D is checked, you must figure

previously filed separate returns is

reasonable cause, or

the penalty yourself and attach a

CAUTION

considered the original return.

•

The underpayment was due to a

completed Form 2210 to your return.

casualty, disaster, or other unusual

Exceptions to the Penalty

circumstance, and it would be inequitable

Other Methods of Figuring

You will not have to pay the penalty if

to impose the penalty.

either (1) or (2) applies.

the Penalty

If requesting a waiver, do the

1. You had no tax liability for 2006,

We realize that there are different ways to

following.

you were a U.S. citizen or resident alien

•

figure the correct penalty. You do not

Check box A or box B in Part II.

for the entire year (or an estate of a

•

have to use the method used on Form

If you checked box A, complete only

domestic decedent or a domestic trust),

2210 as long as you enter the correct

page 1 of Form 2210 and attach it to your

and your 2006 tax return was (or would

penalty amount on the penalty line of your

tax return (you are not required to figure

have been had you been required to file)

return.

the amount of penalty to be waived).

for a full 12 months.

•

However, if you are required to file

If you checked box B, complete

2. The total tax shown on your 2007

Form 2210 because one or more of the

Form 2210 through line 16 (line 30 if you

return minus the amount of tax you paid

boxes in Part II applies to you, you must

use the regular method) without regard to

through withholding is less than $1,000.

complete certain lines.

the waiver. Enter the amount you want

To determine whether the total tax is less

•

If you use the short method, check the

waived in parentheses on the dotted line

than $1,000, complete lines 1 – 7.

applicable boxes in Part II, complete lines

next to line 17 (line 31 for the regular

1 through 14, and enter the penalty on

Estates and trusts. No penalty applies

method). Subtract this amount from the

line 17.

to either of the following.

total penalty you figured without regard to

Cat. No. 63610I

Instructions For Form 2210 - Underpayment Of Estimated Tax By Individuals, Estates, And Trusts - 2007

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