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INSTRUCTIONS

Part 1 – IT-2210 Line Instructions

is after the 4/16/01 payment due date but prior to the next

payment due date, 6/15/01). The taxpayer should calcu-

Line 5 Enter your 2000 tax from line 14 of your 2000 Ohio Form

late the ratio as follows:

IT-1040, line 10 of your 2000 Form IT-1040EZ or line 12 of

your 2000 Form IT-4708. If you did not file a 2000 IT-1040,

Step 1. Determine the number of days from the date the

IT-1040EZ or Form IT-4708 or if your 2000 return reflected

payment was due (4/16/01) to the date the payment was

a period of less than 12 months, do not complete this

paid (5/15/01) 4/16/01 to 5/15/01 = 29 days

line; instead, enter the amount from line 2 on line 6.

Step 2. Calculate the ratio using the following formula:

Line 8 Multiply the amount on line 7 by the percentage indicated

at the top of columns (a), (b), (c), and (d). However, if your

Ratio = interest rate X number of days late/365

income varied during the year (e.g. you operated a busi-

Ratio = .09 X 29/365 = .007151

ness of a seasonal nature), you may be able to lower the

amount of your required payment for the due dates by

The taxpayer should enter the recomputed ratio .007151

using a different method, called the Annualized Income

in the space provided in column (a) on line 14 and then

Installment Method. To use this method to figure your

compute interest penalty for the period 4/16/01 through 5/

required installments, use the Annualized Income

15/01 by multiplying the underpayment by the recomputed

Worksheet in Part II of this form and enter the amounts

ratio. This method applies only if the taxpayer actually

from line 24 of the Worksheet in each column of Part 1,

made full payment of the required estimated payment

line 8. If you use the Worksheet for any payment due

after the due date but prior to the next payment due date.

date, you must use it for all payment due dates.

If the taxpayer made a partial payment after the due date,

see Example 3, below.

Line 9 Enter the amount of cumulative tax withheld for 2001.

You are considered to have paid one fourth of the total

Line 15 Multiply the ratio on line 14 by the respective underpay-

amount withheld on each payment due date unless you

ment on line 13. However, if a partial payment is made

show otherwise. For example, if your total Ohio income

after the payment due date but prior to the next payment

tax withheld for the year is $1,000, you are considered to

due date, ignore the ratio on line 14 and compute the

have had $250 withheld for each payment due date, which

interest penalty on the underpayment for the periods both

on a cumulative basis is $250, $500, $750, and $1,000.

before and after the partial payment using the following

formula:

Line 14 The listed ratios are based upon the statutory interest

rate (9% for 2001 and 7% for 2002) and the time during

Interest penalty = underpayment X interest rate X

which the estimated payment was late. The general for-

number of days late/365

mula for computing the ratio is: Ratio = interest rate X

numbers of days the payment is late/365. The listed

Example 3 – Assume that the underpayment shown on

ratios are computed from the payment due date at the top

line 13 for 4/16/01 is $1,000 and that the taxpayer paid

of each column to the following payment due date and

$600 of this amount on 5/15/01 (which is after the 4/16/01

apply only if the taxpayer either (1) never made the esti-

payment due date but prior to the next payment due date

mated payment or (2) made full payment on or after the

of 6/15/01). The interest penalty for column (a) on line 15

following payment due date.

should be calculated as follows:

For example, the ratio in column (a) is computed by mul-

Step 1. Determine the number of days from the 4/16/01

tiplying the interest rate (9%) times the number of days

payment due date to the 5/15/01 date of the partial pay-

from the 4/16/01 estimated payment due date to the 6/15/

ment: 4/16/01 to 5/15/01 = 29 days.

01 estimated payment due date (60 days) and dividing by

365.

Step 2. Calculate the interest penalty on the $1,000

underpayment for the 29-day period from 4/16/01 to the

Ratio = interest rate X number of days late/365

5/15/01 partial payment date using the formula:

Ratio = .09 X 60/365 = .014795

Interest

interest

number of days late

= underpayment x

Example 1 – Assume that the underpayment shown on

Penalty

rate

365

line 13 for the 4/16/01 due date is $1,000. Also assume

that the taxpayer made no estimated payment during the

period 4/16/01 through 6/15/01. The taxpayer will com-

Interest penalty = $1,000 x .09 x 29/365 = $7.15

pute interest penalty for the period 4/16/01 through 6/15/

01 by multiplying the underpayment shown on line 13,

Step 3. Determine the number of days from the 5/15/01

column (a) by the ratio .014795 shown on line 14, col-

payment date to the next required due date of 6/15/01:

umn (a).

5/15/01 to 6/15/01 = 31 days.

However, if the taxpayer made full payment of the required

Step 4. Calculate the interest penalty on the $400 ($1,000-

estimated payment after the 4/16/01 due date but prior to

$600) underpayment for the 31-day period from 5/15/01

the 6/15/01 payment due date, then the taxpayer should

to 6/15/01 using the formula:

ignore the ratio shown on line 14 and recompute the ratio

based upon the general formula. See Example 2.

Interest penalty = $400 x .09 x 31/365 = $3.06

Example 2 – Assume that the underpayment shown on

Step 5. Add the amounts determined in Steps 2 and 4

line 13 for the 4/16/01 due date is $1,000. Also assume

($7.15 + $3.06 = $10.21). This is the total interest penalty

that the taxpayer paid this full amount on 5/15/01 (which

for the period 4/16/01 to 6/15/01.

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Instructions For Form It-2210 - Interest Penalty On Underpayment Of Ohio Estimated Tax By Individuals - 2000

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