Figure 4-C, Annualized Income Installment Method—Illustrated (Laura Maple) (Continued)

Summary: This is an example of Worksheet for Form 2210, Part IV, Section B—Figure the Penalty. The completed line items are:
 Payment Due Dates: (a) 4/15/11Payment Due Dates: (b) 6/15/11Payment Due Dates: (c) 9/15/11Payment Due Dates: (d) 1/15/12
"1a. Enter your underpayment from Part IV, Section A, line 25"   2.764
"1b. Date and amount of each payment applied to the underpayment in the same column. Do not enter more than the underpayment amount on 1a for each column (see instructions."Note. Your payments are applied to an underpayment balance on an earlier installment until the underpayment is fully paid.    1/15 409
"Rate Period 1: April 16, 2011–June 30, 2011" (shaded area)(shaded area)(shaded area)(shaded area)
"2. Computation starting dates for this period"4/15/116/15/11(shaded area)(shaded area)
"3. Number of days from the date on line 2 to the date on line 1a was paid or 06/30/11, whichever is earlier" Days:Days:(shaded area)(shaded area)
"4. Underpayment on line 1a x (Number of days on line 3/365) x .04"  (shaded area)(shaded area)
"Rate Period 2: July 1, 2011–September 30, 2011" (shaded area)(shaded area)(shaded area)(shaded area)
"5. Computation starting dates for this period"6/30/116/30/119/15/11(shaded area)
"6. Number of days from the date on line 5 to the date on line 1a was paid or 9/30/11, whichever is earlier" Days:Days:Days:(shaded area)
"7. Underpayment on line 1a x (Number of days on line 3/365) x .04"   (shaded area)
"Rate Period 3: October 1, 2011–December 31,2011" (shaded area)(shaded area)(shaded area)(shaded area)
"8. Computation starting dates for this period"9/30/119/30/119/30/11(shaded area)
"9. Number of days from the date on line 8to the date on line 1a was paid or 12/31/11, whichever is earlier" Days:Days:Days:(shaded area)
"10. Underpayment on line 1a x (Number of days on line 3/365) x .03"   (shaded area)
"Rate Period 4: January 1, 2011––April 15, 2012" (shaded area)(shaded area)(shaded area)(shaded area)
"11. Computation starting dates for this period"12/31/1112/31/1112/31/111/15/12
"12. Number of days from the date on line 11 to the date on line 1a was paid or 4/15/12, whichever is earlier" Days:Days: Days: Days: 91
"13. Underpayment on line 1a x (Number of days on line 6/366) x .03"$$$$20.62
"14. Penalty. Add all amounts on lines 4 and 7 in all columns. Enter the total here and on line 27 of Part IV, Section B" $20.62

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