Publication 505 - Tax Withholding And Estimated Tax Page 44

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2210
OMB No. 1545-0140
Underpayment of
Form
2001
Estimated Tax by Individuals, Estates, and Trusts
See separate instructions.
Department of the Treasury
Attachment
06
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.
1
Check whichever boxes apply (if none apply, see the text above Part I and do not file Form 2210):
a
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.
b
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.
c
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.
d
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
2
2
Enter your 2001 tax after credits (see page 2 of the instructions)
3
3
Other taxes (see page 2 of the instructions)
11,000
4
4
Add lines 2 and 3
5
5
Earned income credit
6
6
Additional child tax credit
7
7
Credit for Federal tax paid on fuels
- 0 -
8
8
Add lines 5, 6, and 7
11,000
9
9
Current year tax. Subtract line 8 from line 4
9,900
10
10
Multiply line 9 by 90% (.90)
11
Withholding taxes. Do not include any estimated tax payments on this line (see page 3 of the
1,600
11
instructions)
12
Subtract line 11 from line 9. If less than $1,000, stop here; you do not owe the penalty. Do not
9,400
12
file Form 2210
13
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
13
$75,000). Caution: See page 3 of the instructions
9,900
14
14
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
15
15
Enter the amount, if any, from line 11 above
6,800
16
16
Enter the total amount, if any, of estimated tax payments you made
8,400
17
17
Add lines 15 and 16
18
Total underpayment for year. Subtract line 17 from line 14. If zero or less, stop here; you do
1,500
18
not owe the penalty. Do not file Form 2210 unless you checked box 1d above
19
Multiply line 18 by .04397 (see page 3 of the instructions if you are eligible for relief due to the
66
19
September 11, 2001, terrorist attacks)
● If the amount on line 18 was paid on or after 4/15/02, enter -0-.
20
● 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
7
20
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
21
1040A, line 46; Form 1040NR, line 69; Form 1040NR-EZ, line 26; or Form 1041, line 26, but do
59
not file Form 2210 unless you checked one or more of the boxes in Part I above
21
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

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