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previous page Previous Page: Publication 505 - Tax Withholding and Estimated Tax - Farmers and Fishermen
next page Next Page: Publication 505 - Tax Withholding and Estimated Tax - How To Get Tax Help
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p505-026.htm#en_us_publink10007568

Waiver of Penalty(p60)


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Waiver of Penalty

The IRS can waive the penalty for underpayment if either of the following applies.
  1. You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty.
  2. You retired (after reaching age 62) or became disabled in 2007 or 2008 and both the following requirements are met.
    1. You had a reasonable cause for not making the payment.
    2. Your underpayment was not due to willful neglect.
taxmap/pubs/p505-026.htm#en_us_publink10007569

How to request a waiver.(p60)


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To request a waiver, complete Form 2210 as follows.
  1. Check box A or B in Part II.
  2. If you checked box A, complete only page 1 of Form 2210.
  3. If you checked box B:
    1. Complete line 1 through line 16 (or lines 1 through 9 and 18 through 34 if you use the regular method) without regard to the waiver.
    2. Enter the amount you want waived in parentheses on the dotted line next to line 17 (line 35 for the regular method).
    3. Subtract this amount from the total penalty you figured without regard to the waiver. Enter the result on line 17 (line 35 for the regular method).
  4. 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.
  5. If you are requesting a penalty 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.
  6. If you are requesting a penalty waiver due to a casualty, disaster, or other unusual circumstance, attach documentation such as police and insurance company reports. See later on this page for special procedures that apply for federally declared disasters.
The IRS will review the information you provide and will decide whether or not to grant your request for a waiver.
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Farmers and fishermen.(p60)
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To request a waiver, you must complete Form 2210-F as follows.
  1. Check box 1a in Part I.
  2. Complete line 2 through line 20 without regard to the waiver.
  3. Enter the amount you want waived in parentheses on the dotted line next to line 21.
  4. Subtract this amount from the total penalty you figured without regard to the waiver. Enter the result on line 21.
  5. Attach Form 2210-F and a statement to your return explaining the reasons you were unable to meet the estimated tax requirements.
  6. If you are requesting a penalty 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.
  7. If you are requesting a penalty waiver due to a casualty, disaster, or other unusual circumstance, attach documentation such as police and insurance company reports.
The IRS will review the information you provide and will decide whether or not to grant your request for a waiver.
taxmap/pubs/p505-026.htm#en_us_publink1000147836

Federally declared disaster.(p60)


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Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. Do not file Form 2210 if your underpayment was due to a federally declared disaster. If you still owe a penalty after the automatic waiver is applied, we will send you a bill.
Individuals, estates, and trusts not in a covered disaster area but whose books, records, or tax professionals' offices are in a covered area are also entitled to relief. Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. If you meet either of these eligibility requirements, you must call the IRS disaster hotline at 1-866-562-5227 and identify yourself as eligible for this relief.
Details on the applicable disaster postponement period can be found at http://www.irs.gov/individuals/index.html. Select Tax Relief in Disaster Situations and then the federally declared disaster that affected you.
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Figure 4-A. Form 2210--Illustrated (Ivy Fields). Filled-in examples for Ivy Fields Text DescriptionFigure 4-A. Form 2210--Illustrated (Ivy Fields). Filled-in examples for Ivy Fields  
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Form 2210 (2008) Page 2 Text DescriptionForm 2210 (2008) Page 2  
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Figure 4-B. Regular Installment Method--Illustrated (Ben Brown). Filled-in examples for Ben Brown Text DescriptionFigure 4-B. Regular Installment Method--Illustrated (Ben Brown). Filled-in examples for Ben Brown  
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Figure 4-B. Regular Installment Method--Illustrated (Ben Brown) (Continued). Filled-in examples for Ben Brown Text DescriptionFigure 4-B. Regular Installment Method--Illustrated (Ben Brown) (Continued). Filled-in examples for Ben Brown  
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Figure 4-C. Annualized Installment Method--Illustrated (Laura Maple). Filled-in examples for Laura Maple. Text DescriptionFigure 4-C. Annualized Installment Method--Illustrated (Laura Maple). Filled-in examples for Laura Maple.  
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Form 2210 (2008) Page 3 Text DescriptionForm 2210 (2008) Page 3  
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Worksheet 4-1. 2008 Form 2210, Schedule AI—Line 12
Qualified Dividends and Capital Gain Tax Worksheet

Note.  To figure the annualized entries for lines 2, 3, and 5 below, multiply the expected amount for the period by the
 annualization amount for the same period.
         
1.Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-21.              
2.Enter your annualized qualified dividends for the period2.                
3.Are you filing Schedule D?      
 Yes. Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. If either line 15 or line 16 is a loss, enter -0-. Right brace3.                
 No. Enter your annualized capital gain or (loss) from Form 1040, line 13       
4.Add lines 2 and 3 4.                
5.If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. Otherwise, enter -0-  5.                
6.Subtract line 5 from line 4. If zero or less, enter -0-6.              
7.Subtract line 6 from line 1. If zero or less, enter -0-7.              
8.Enter the smaller of:
  • The amount on line 1, or
  • $32,550 if single or married filing separately,
    $65,100 if married filing jointly or qualifying widow(er),
    $43,650 if head of household
8.              
9.Is the amount on line 7 equal to or more than the amount on line 8?
Yes. Skip lines 9 and 10; go to line 11 and check the "No" box.
No. Enter the amount from line 7
9.              
10.Subtract line 9 from line 8.10.              
11.Are the amounts on lines 6 and 10 the same?
Yes. Skip lines 11 through 14; go to line 15.
No. Enter the smaller of line 1 or line 6
11.              
12.Enter the amount from line 10 (if line 10 is blank, enter -0-)12.              
13.Subtract line 12 from line 1113.              
14.Multiply line 13 by 15% (.15)14.            
15.Figure the tax on the amount on line 7. Use the Tax Table or Tax Computation Worksheet in the 2008 Form 1040 instructions, whichever applies 15.            
16.Add lines 14 and 1516.            
17.Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet in the 2008 Form 1040 instructions, whichever applies 17.            
18.Tax on all taxable income. Enter the smaller of line 16 or line 17. Enter this amount on line 12 of Schedule AI 18.            


taxmap/pubs/p505-026.htm#w15008e36

Worksheet 4-2. 2008 Form 2210, Schedule AI—Line 12
Foreign Earned Income Tax Worksheet

Before you begin: If Schedule AI, line 11, is zero for the period, do not complete this worksheet.   
    
1.Enter the amount from line 11 of Schedule AI for the period1.            
2.Enter the annualized amount* of foreign earned income and housing amount excluded or deducted (from Form 2555, lines 45 and 50, or Form 2555-EZ, line 18) in figuring the amount entered for the period on line 1 of Schedule AI 2.            
3.Add lines 1 and 23.            
4.Tax on the amount on line 3. Use the Tax Table, Tax Computation Worksheet, Form 8615,** Qualified Dividends and Capital Gain Worksheet,*** or Schedule D Tax Worksheet,*** whichever applies. See the 2008 Instructions for Form 1040, line 44, to find out which tax computation method to use. (Note. You do not have to use the same method for each period on Schedule AI.) 4.            
5.Tax on the amount on line 2. Use the Tax Table or Tax Computation Worksheet, whichever applies, from the 2008 Form 1040 instructions 5.            
6.Subtract line 5 from line 4. Enter the result here and on line 12 of Schedule AI. If zero or less,
enter -0-
6.            
    
 * To figure the annualized amount for line 2, multiply the exclusion for the period by the annualization amount on line 2 of Schedule AI for the same period.  
 ** If you use Form 8615 to figure the tax on line 4 above, enter the amount from line 3 above on line 4 of Form 8615. If the child's parent files Form 2555 or 2555-EZ, enter the amounts from lines 3 and 4 of the parent's Foreign Earned Income Tax Worksheet on lines 6 and 10, respectively, of Form 8615. Complete the rest of Form 8615 according to its instructions. Then complete lines 5 and 6 above.  
 *** Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet (or Worksheet 4-1 in this chapter) or the Schedule D Tax Worksheet, whichever worksheet you use to figure the tax on line 4 above. Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Next, determine if you have a capital gain excess.  
 Figuring capital gain excess. To find out if you have a capital gain excess for the appropriate period, subtract line 11 of Schedule AI from line 6 of Worksheet 4-1 or your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.  
 No capital gain excess. If you do not have a capital gain excess, complete the rest of Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or the Schedule D Tax Worksheet according to the worksheet's instructions. Then complete lines 5 and 6 above.  
 Capital gain excess. If you have a capital gain excess, complete a second Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above.  
 Make these modifications only for purposes of filling out Worksheet 4-2 above. 
 a. Reduce (but not below zero) the amount you otherwise would enter on line 3 of your Worksheet 4-1, line 3 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 7 of your Schedule D Tax Worksheet by your capital gain excess.  
 b. Reduce (but not below zero) the amount you otherwise would enter on line 2 of your Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet by any of your capital gain excess not used in (a) above.  
 c. Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. 
 d. Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet on page D-9 of the 2008 Instructions for Schedule D (Form 1040).  
previous pagePrevious Page: Publication 505 - Tax Withholding and Estimated Tax - Farmers and Fishermen
next pageNext Page: Publication 505 - Tax Withholding and Estimated Tax - How To Get Tax Help
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication