Publication 505 - Tax Withholding And Estimated Tax (Page 44 of 49) in pdf

2210

OMB No. 1545-0140

Underpayment of

Form

2001

Estimated Tax by Individuals, Estates, and Trusts

See separate instructions.

Department of the Treasury

Attachment

Attach to Form 1040, 1040A, 1040NR, 1040NR-EZ, or 1041.

Sequence No.

Internal Revenue Service

Name(s) shown on tax return

Identifying number

Ivy Fields

222 - 00 - 2222

In most cases, you do not need to file Form 2210. The IRS will figure any penalty you owe and send you a bill.

File Form 2210 only if one or more boxes in Part I apply to you. If you do not need to file Form 2210, you still

may use it to figure your penalty. Enter the amount from Part III, line 21, or Part IV, line 37, on the penalty line

of your return, but do not attach Form 2210.

Part I

Reasons for Filing—If 1a, 1b, or 1c below applies to you, you may be able to lower or eliminate your

penalty. But you must check the boxes that apply and file Form 2210 with your tax return. If 1d below

applies to you, check that box and file Form 2210 with your tax return.

Check whichever boxes apply (if none apply, see the text above Part I and do not file Form 2210):

You request a waiver. In certain circumstances, the IRS will waive all or part of the penalty. See Waiver of Penalty on

page 2 of the instructions.

You use the annualized income installment method. If your income varied during the year, this method may reduce the

amount of one or more required installments. See page 5 of the instructions.

You had Federal income tax withheld from wages and, for estimated tax purposes, you treat the withheld tax as paid on

the dates it was actually withheld, instead of in equal amounts on the payment due dates. See the instructions for

line 23 on page 3.

Your required annual payment (line 14 below) is based on your 2000 tax and you filed or are filing a joint return for either

2000 or 2001 but not for both years.

Part II

Required Annual Payment

Example 4.4

11,000

Enter your 2001 tax after credits (see page 2 of the instructions)

Other taxes (see page 2 of the instructions)

11,000

Add lines 2 and 3

Earned income credit

Additional child tax credit

Credit for Federal tax paid on fuels

- 0 -

Add lines 5, 6, and 7

11,000

Current year tax. Subtract line 8 from line 4

9,900

Multiply line 9 by 90% (.90)

Withholding taxes. Do not include any estimated tax payments on this line (see page 3 of the

1,600

instructions)

Subtract line 11 from line 9. If less than $1,000, stop here; you do not owe the penalty. Do not

9,400

file Form 2210

Enter the tax shown on your 2000 tax return (110% of that amount if the adjusted gross income

shown on that return is more than $150,000, or, if married filing separately for 2001, more than

10,000

$75,000). Caution: See page 3 of the instructions

9,900

Required annual payment. Enter the smaller of line 10 or line 13

If line 11 is equal to or more than line 14, stop here; you do not owe the penalty.

Do not file Form 2210 unless you checked box 1d above.

Part III

Short Method (Caution: See page 3 of the instructions to find out if you can use the short method. If

you checked box 1b or 1c in Part I, skip this part and go to Part IV.)

Example 4.5

1,600

Enter the amount, if any, from line 11 above

6,800

Enter the total amount, if any, of estimated tax payments you made

8,400

Add lines 15 and 16

Total underpayment for year. Subtract line 17 from line 14. If zero or less, stop here; you do

1,500

not owe the penalty. Do not file Form 2210 unless you checked box 1d above

Multiply line 18 by .04397 (see page 3 of the instructions if you are eligible for relief due to the

September 11, 2001, terrorist attacks)

● If the amount on line 18 was paid on or after 4/15/02, enter -0-.

● If the amount on line 18 was paid before 4/15/02, make the following computation to find the

amount to enter on line 20.

Amount on

Number of days paid

line 18

before 4/15/02

.00016

Penalty. Subtract line 20 from line 19. Enter the result here and on Form 1040, line 71; Form

1040A, line 46; Form 1040NR, line 69; Form 1040NR-EZ, line 26; or Form 1041, line 26, but do

not file Form 2210 unless you checked one or more of the boxes in Part I above

2210

For Paperwork Reduction Act Notice, see page 6 of separate instructions.

Cat. No. 11744P

Form

(2001)

Page 44

Chapter 4 Underpayment Penalty for 2001

Publication 505 - Tax Withholding And Estimated Tax Page 44

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