Table of Contents
Generally, 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 penalty. If you are not required to file Form 2210, you can use it to figure your penalty if you wish to do so. In that case, enter the penalty on your return, but do not file Form 2210.
Use the flowchart at the top of page 1 of Form 2210 to see if you must file this form.
If you did not check box B, C, or D in Part II, you do not need to figure the penalty or file Form 2210. The IRS will figure any penalty for underpayment of estimated tax and send you a bill. If you file your return by April 15, 2010, no interest will be charged on the penalty if you pay the penalty by the date shown on the bill.
If you want us to figure the penalty for you, complete your return as usual. Leave the penalty line on your return blank; do not file Form 2210.
We realize that there are different ways to figure the correct penalty. You do not have to use the method used on Form 2210 as long as you enter the correct penalty amount on the “Estimated tax penalty” line of your return.
However, if you are required to file Form 2210 because one or more of the boxes in Part II applies to you, you must complete certain lines and enter the penalty on the “Estimated tax penalty” line of your return.
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If you use the short method, complete Part I, check the box(es) that applies in Part II, and complete Part III. Enter the penalty on line 17 and on the “Estimated tax penalty” line on your tax return.
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If you use the regular method, complete Part I, check the box(es) that applies in Part II, and complete Part IV. Enter the penalty on line 31 and on the “Estimated tax penalty” line on your tax return.
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If you use the annualized income installment method, complete Part I, check the box(es) that applies in Part II, and complete Schedule AI and Part IV. Enter the penalty on line 31 and on the “Estimated tax penalty” line on your tax return.
In general, you may owe the penalty for 2009 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of:
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90% of your 2009 tax, or
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100% of your 2008 tax. (Your 2008 tax return must cover a 12-month period.)
If at least two-thirds of your gross income for 2008 or 2009 is from farming and fishing, substitute 66% for 90% in (1) above. See Farmers and fishermen on page 2 to see if you qualify.
If your adjusted gross income (AGI) for 2008 was more than $150,000 ($75,000 if your 2009 filing status is married filing separately), substitute 110% for 100% in (2) above.
If you meet the qualifications listed below and checked box “F” in Part II, substitute 90% for 100% in (2) above.
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Your AGI in 2008 was less than $500,000 ($250,000 if married filing separately in 2009).
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More than 50% of your gross income in 2008 was from a small business, which is defined as a trade or business in which you were an owner during the calendar year 2008 and that averaged less than 500 employees for 2008.
You will not have to pay the penalty if either of the following applies.
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You had no tax liability for 2008, you were a U.S. citizen or resident alien for the entire year (or an estate of a domestic decedent or a domestic trust), and your 2008 tax return was (or would have been had you been required to file) for a full 12 months.
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The total tax shown on your 2009 return minus the amount of tax you paid through withholding is less than $1,000. To determine whether the total tax is less than $1,000, complete lines 1 through 7.
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A decedent's estate for any tax year ending before the date that is 2 years after the decedent's death.
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A trust that was treated as owned by the decedent if the trust will receive the residue of the decedent's estate under the will (or if no will is admitted to probate, the trust primarily responsible for paying debts, taxes, and expenses of administration) for any tax year ending before the date that is 2 years after the decedent's death.
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Your gross income from farming or fishing is at least two-thirds of your annual gross income from all sources for 2008 or 2009.
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You filed Form 1040 or 1041 and paid the entire tax due by March 1, 2010.
If you have an underpayment, all or part of the penalty for that underpayment will be waived if the IRS determines that:
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In 2008 or 2009, you retired after reaching age 62 or became disabled, and your underpayment was due to reasonable cause, or
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The underpayment was due to a casualty, disaster, or other unusual circumstance, and it would be inequitable to impose the penalty. For federally declared disaster areas, see the separate information below.
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The underpayment was caused by adjustments made to income tax withholding tables that took effect in spring 2009.
To request any of the above waivers, do the following.
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Check box A or box B in Part II.
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If you checked box A, complete only page 1 of Form 2210 and attach it to your tax return (you are not required to figure the amount of penalty to be waived).
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If you checked box B, complete Form 2210 through line 16 (line 30 if you use the regular method) without regard to the waiver. Enter the amount you want waived in parentheses on the dotted line next to line 17 (line 31 for the regular method). Subtract this amount from the total penalty you figured without regard to the waiver, and enter the result on line 17 (line 31 for the regular method).
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Attach Form 2210 and a statement to your return explaining the reasons you were unable to meet the estimated tax requirements and the time period for which you are requesting a waiver.
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If you are requesting a waiver due to retirement or disability, attach documentation that shows your retirement date (and your age on that date) or the date you became disabled.
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If you are requesting a waiver due to a casualty, disaster (other than a federally declared disaster as discussed below), or other unusual circumstance, attach documentation such as copies of police and insurance company reports.
The IRS will review the information you provide and decide whether to grant your request for a waiver.
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