rm 2210

Underpayment of
Estimated Tax by Individuals and Fiduclarles

OMB No. 1545-0140

1990

Department of the Treasury > Ses separate Instructions. Attachment

internal Revenue Service »__Attach to Form 1040, Form 1040A, or Form 1041. Sequence No. 44
Name(s) shown on tax return Identifying number

A Change To Note Short Method

In response to many requests to simplify Form 2210, IRS has
developed a new Short Method to figure the penalty. To see if you
can use the short method, read the instructions on this page.
Then, if you can use it, complete only Parts | and || below.
Purpose of Form

_ Use Form 2210 to see if you owe a penalty for underpaying your
estimated tax and, if you do, to figure the amount of the penaity.

if you prefer, IRS will figure the penatty for you and send you a

bill. But see Lowering Your Penalty, below. !f you want IRS to
figure the penalty for you, leave the penalty line on your return

blank; do not file Form 2210.

Lowering Your Penalty

\f any of the conditions below applies to you, you may be able to

lower the amount of your penalty. But you must complete and

attach Form 2210 to your tax return to do so. In the space next to
the penalty amount on your tax return, you must write the letter

(A, B, or C) that corresponds to any of the following conditions

that applies to you.

A. You claim a waiver. See page 1 of the separate Instructions.

B. Your income varied during the year and you use the annualized
Income installment method to figure your required installment
payments. See the instructions for tine 20.

C. You had Federal income tax withheld from your wages and you
treat it as being paid when it was actually withheld (instead of
in four equal amounts). See the instructions for line 21.

If you made estimated tax payments, you may use the short
method only if:

You paid your estimated tax in four equa! amounts; and
You paid your estimated tax on the due dates.

You may also use the short method if you made no payments at
all, or your only credit for payment was due to Federal income tax
withholding.

Note: /f you made estimated tax payments, the short method will

&ive the precise penalty amount only if your payments were made

exactly on the due dates. If any payment was made early, using

the short method may cause you to pay a larger penalty than the

regular ‘method. if the payment is only a few days early, the
rence will generally be small.

Although line 17 of the short method requires a five-place
decimal computation, it will relieve you of making the more
complicated computations under the regular method.

Do not use the short method if you made any of your estimated
tax payments late.

You must use the regu ular method if B or C under Lowering
Your Penalty applies. But if A applies, and you meet the
conditions above, you may use the short method.

Regular Method

Use the regular method to figure the penalty if you did not pay
your estimated tax payments on the due dates or in four equal
amounts. To use the regular method, complete Part | below and
Part Illon the back.

Peart i Required Annual Payment—aAll filers must complete this part.

1 Enter your 1990 tax after credits (from Form 1040, line 47; Form 1040A, line 25; or Form 1041,

Schedule G, line 4)

Other taxes (see instructions)

Add lines 1 and 2

Earned income credit .

Credit for Federal tax on fuels

Add lines 4 and S :

Current year tax. Subtract line 6 from line 3.
Multiply line 7 by 90% (.90) and enter the result

OBUAAAWH

do nat owe the penalty . (J
11 Enter your prior year (1989) tax. (Caution: See Instructions. ) eras a © 4
12 Required annual payment. Enter the smalier of line 8 or line 11 (see Instructions) rs os 53

Note: /f line 9 is equal to or more than line 12, stop here. You do not owe the penalty.

Withhoiding taxes from 1990 Form 1040, lines 55 and 59; Form 10402, ‘ine 28a; or Form 1041, line 24e.
Include any credit from Form 4469. (Do not include any estimated tax payments onthisline). . . » Lg

10 Subtract line 9 from line 7. if the result is less than $500, stop here; do not complete or file this form. You

7
5

as

art ll

Short Method—-if you made estimated tax payments, use this method only if they were paid on the due dates and
in four equal amounts. Otherwise, use the regular method (Part Ill) on the back.

13 Enter the amount, if any, from line 9 above

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

15 Add lines 13.and 14.

16 Total underpayment for year. Subtract line 15 from line 12. ‘af the result is zero or less, ‘stop here; you do

not owe the penaity.) . .
17 Multiply fine 16 by 07315 and enter the result .

18 e Ifthe amount on line 16 was paid on or after 4/15/91, ‘enter 0.
@ [f the amount on line 16 was paid before 4/15/91, make the following computation to find the amount

Number of days paid
before 4/15/91 x

19 PENALTY. Subtract line 18 from line 17. Enter the result here and on Form 1040, line 67; Form m 10408,
sett >

to enter on line 18. Amount on

line 16 *

tine 33; or Form 1041, line 26

. L43
U4

- (48)
16

.0003 .

19

For Paperwork Reduction Act Notice, see page 1 of separate Instructions.

Form 2210 (1990)


Form 2210 (1990)

Page 2

Regular Method

Payment Due Dates
Section A—Figure Your Underpayment @ () (© (Oy
4/15/90 6/15/90 9/15/90 1/15/91

20

21

22

23

24

25

26

27

28

Required instaliment. Divide line 12 by 4 and enter the
result in each column. Exception: If you use the
annualized income installment method, see the
Instructions and check thisbox.. 2 . . >
Complete lines 21 through 28 of one column before
going to the next column.

Estimated tax paid and tax withheld. (See Instructions.)
For column (a) only, also enter the amount from line 21
online 25. :

if line 21 is equal to or more than line 20 for ‘all
payment periods, stop here; you do not owe the
penalty. But see “Lowering Your Penalty” on page 1.

Enter amount, if any, from line 28 of previous column .
Add lines 21 and 22

Add amounts on lines 26 and 27 of the previous column.
Enter the total here .

Subtract line 24 from line 23. ft zero or ‘ess, enter ‘0.
For column (a) only, enter the amount from line 21 .
Remaining underpayment from previous period. H the
amount on line 25 is -O-, subtract line 23 from line 24
and enter the result. Otherwise, enter -O-. sone
Underpayment. If line 20 is equal to or more than line
25, subtract line 25 from line 20. Then go to line 21 of
next column. Otherwise, gotoline28. 0 2 1 1

Overpayment. If line 25 is more than line 20, subtract
line 20 from line 25. Then go to line 21 of next column.

20

21

22

23

25

27

| 28 |

Section B—Figure the Penalty (Complete lines 29 and 30 of one column before going to the next column.)

Yj
4/15/90

6/15/90 9/15/90 1/15/91

29 Number of days FROM the date shown above line 29 TO Das: Days: Days [avs

the date the amount on line 27 was paid or 4/25/91,

whichever is earlier . . [29

Number of days .
30 i x ux underpayment on

365 : line 27 (see Instructions) » | 30 | $ $ $ $

31

PENALTY. Add the amounts in each column of line 30. Enter the total here and on Form 1040, line 67;
>

Form 1040A, line 33; or Form 1041, line 26.

311$

$2 U.S.GPO: 390-265-297 E.1.49-1410168