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In column (a), enter the tax payments

Section B—Figure the Penalty

Table 2

you made by April 15, 2007; in column

Payments after 12/31/07 through 4/15/08

(b), enter payments you made after April

Before completing Section B, read

Date

Payments

15 through June 15, 2007; in column (c),

the following instructions through

enter payments you made after June 15

line 30, including Example 2

CAUTION

through Example 9.

through September 15, 2007; and in

column (d), enter payments you made

Figure the penalty for each period by

after September 15, 2007, through

applying the appropriate rate against

January 15, 2008.

each underpayment shown on line 25.

The penalty is figured for the number of

When figuring your payment dates and

days that the underpayment remained

the amounts to enter on line 19 of each

Total days per rate period. If an

unpaid.

column, apply the following rules.

underpayment remained unpaid for an

•

For withheld federal income tax and

entire rate period, use the chart below to

The rates are established at various

excess social security or tier 1 railroad

determine the number of days to enter in

times throughout the year. For the period

each column. The chart is organized in

retirement tax, you are considered to

covered by the 2007 Form 2210, there

the same format as Form 2210, Part IV,

have paid one-fourth of these amounts on

were two rates in effect over two rate

Section B.

each payment due date unless you can

periods. If an underpayment remained

show otherwise.

unpaid for more than one rate period, the

Chart of Total Days

penalty on that underpayment will be

figured using more than one rate.

If you treat withholding as paid for

Rate Period

(a)

(b)

(c)

(d)

estimated tax purposes when it

Use lines 27 and 29 to figure the

was actually withheld, you must

1 (Line 27)

260

199

107

—

CAUTION

number of days the underpayment

check box D in Part II and complete and

remained unpaid. Use lines 28 and 30 to

2 (Line 29)

106

attach Form 2210 to your return.

figure the actual penalty amount by

applying the rate to the underpayment for

•

For example, if you have an

Include in your estimated tax payments

the number of days it remained unpaid.

underpayment on line 25, column (a), but

any overpayment of tax from your 2006

show no payments in Table 1, you would

tax return that you elected to apply to

Your payments are applied first to any

enter “260” on line 27, column (a).

your 2007 estimated tax. If you file your

underpayment balance on an earlier

installment. It does not matter if you

return by the due date, treat the

When you make a payment during

designate a payment for a later period.

overpayment as a payment made on April

TIP

a rate period, see Table 4-1 (Pub.

15, 2007. Payments made after the due

505, chapter 4) for an easy way to

Example 2. You had a $500

date (not including extensions) are

figure the number of days the payment is

underpayment for the April 15 installment.

late.

treated as made on the date of payment.

The June 15 installment required a

Rate Period 1

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

Example 1. You had federal income

made a payment of $1,200 to cover the

First, complete Section B, column (a),

tax of $4,000 withheld from your wages

June 15 installment. However, $500 of

lines 27 through 30, for an underpayment

during 2007 and elected to have the

this payment is applied first to the April 15

shown on line 25, column (a). If there is

$1,000 overpayment from your 2006

installment. The penalty for the April 15

also an underpayment shown in column

return applied to your estimated tax

installment is figured to June 10 (56

(b), (c), or (d) on line 25, then complete

payment. On line 19, you would enter

days). The amount applied to the June 15

lines 27 through 30 for those columns in a

$2,000, ($1,000 withholding + $1,000

installment is $700.

similar manner.

overpayment) in column (a), and $1,000

(withholding) in columns (b), (c) and (d).

List your payments made after 4/15/07.

Line 27

Before figuring your penalty in Section B,

Enter on line 27, column (a), the number

•

it will be helpful to list the payments you

If you file your return and pay the tax

of days from 4/15/07 to the date of the

made after April 15, 2007, in the following

due by January 31, 2008, include on line

first payment listed in Table 1. If no

tables.

19, column (d), the amount of tax you pay

payments are listed, enter “260” (see the

with your tax return. In this case, you will

Chart of Total Days, above).

In each table, list only the payments

not owe a penalty for the payment due on

Example 3. You had an underpay-

made during the dates shown in the table

January 15, 2008.

ment of $5,000 on line 25, column (a),

heading. Follow the instructions under

•

If you paid estimated tax on April 16 or

and your first payment shown in Table 1

Line 19 to determine the date of payment.

17, 2007, it is considered paid on April 15,

was made on 4/30/07 in the amount of

In Table 1, list any overpayment from

$3,000. Enter “15” (number of days from

2007.

your 2006 return applied to your 2007

•

4/15 to 4/30) on line 27, column (a).

estimated tax payments as paid on

If you paid estimated tax on September

4/15/07. List any payment made on a

16 or 17, 2007, it is considered paid on

Line 28

balance due for your 2007 return on

September 15, 2007, to the extent it is

Make the computation requested on line

Table 2. Use the date you filed your

applied to the third required installment.

28 and enter the result. The amount you

return or 4/15/08, whichever is earlier, as

use as the “underpayment” on line 25

the payment date.

Line 25

depends on whether any payments are

If line 25 is zero for all payment periods,

listed in Table 1. See the instructions

Table 1

you do not owe a penalty. But if you

below and the examples in chapter 4 of

Payments after 4/15/07 through 12/31/07

Pub. 505.

checked box C or D in Part II, you must

file Form 2210 with your return. If you

Date

Payments

If there are payments listed in Table 1.

checked box E, you must file page 1 of

On a separate sheet of paper, apply the

Form 2210 with your return.

first payment to the underpayment shown

on line 25, column (a). The

In certain circumstances, the IRS will

“underpayment” for the computation on

waive all or part of the underpayment

line 28 is the amount of payment applied

penalty. See Waiver of Penalty beginning

to the line 25, column (a), underpayment.

on page 1.

If the first payment is not enough to

-3-

Instructions For Form 2210 - Underpayment Of Estimated Tax By Individuals, Estates, And Trusts - 2007 Page 3

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