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IRS.gov Website
Publication 505
taxmap/pubs/p505-023.htm#en_us_publink1000194855

Regular Method for Figuring the Penalty (Part IV)(p53)

rule
You can use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if you paid one or more estimated tax payments earlier than the due date.
You must use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if any of the following apply to you.
Under the regular method, figure your underpayment for each payment period in Section A, then figure your penalty using the Penalty Worksheet in the Instructions for Form 2210. Enter the results on line 27 of Section B.
taxmap/pubs/p505-023.htm#en_us_publink1000194856

Figuring Your Underpayment
(Part IV, Section A)(p53)

rule
Figure your underpayment of estimated tax for each payment period in Section A following the line-by-line instructions in the Instructions for Form 2210. Complete lines 20 through 26 of the first column before going to line 20 of the next column.
taxmap/pubs/p505-023.htm#en_us_publink1000194857

Required installments—line 18.(p53)

rule
Your required payment for each payment period (line 18) is usually one-fourth of your required annual payment (Part I, line 9). This method—the regular method—is the one to use if you received your income evenly throughout the year.
However, if you did not receive your income evenly throughout the year, you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. First complete Schedule AI (Form 2210), then enter the amounts from line 25 of that schedule on line 18 of Form 2210, Part IV. See Annualized Income Installment Method (Schedule AI), later.
taxmap/pubs/p505-023.htm#en_us_publink1000194859

Payments made—line 19.(p53)

rule
Enter in each column the total of: For special rules for figuring your payments, see Form 2210 instructions for line 19.
If you file Form 1040, your withholding is the amount on line 62, plus any excess social security or tier 1 RRTA tax withholding on line 69. If you file Form 1040A, your withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included in line 41.
taxmap/pubs/p505-023.htm#en_us_publink1000194860
Actual withholding method.(p53)
Instead of using one-fourth of your withholding for each quarter, you can choose to use the amounts actually withheld by each due date. You can make this choice separately for the tax withheld from your wages and for all other withholding. This includes any excess social security and tier 1 RRTA tax withheld.
Using your actual withholding may result in a smaller penalty if most of your withholding occurred early in the year.
If you use your actual withholding, you must check box D in Form 2210, Part II. Then complete Form 2210 using the regular method (Part IV) and file it with your return.
taxmap/pubs/p505-023.htm#en_us_publink1000194861

Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty(p53)

rule
Figure the amount of your penalty for Section B using the Penalty Worksheet in the Form 2210 instructions. The penalty is imposed on each underpayment amount shown on Form 2210, Section A, line 25, for the number of days that it remained unpaid.
For 2013, there are four rate periods—April 16 through June 30, July 1 through September 30, October 1 through December 31, and January 1, 2014 through April 15, 2014. A 3% rate applies to all four periods.
taxmap/pubs/p505-023.htm#en_us_publink1000194862

Payments.(p54)

rule
Before completing the Penalty Worksheet, it may be helpful to make a list of the payments you made and income tax withheld after the due date (or the last day payments could be made on time) for the earliest payment period an underpayment occurred. For example, if you had an underpayment for the first payment period, list your payments after April 15, 2013. You can use the table in the Form 2210 instructions to make your list. Follow those instructions for listing income tax withheld and payments made with your return. Use the list to determine when each underpayment was paid.
If you mail your estimated tax payments, use the date of the U.S. postmark as the date of payment.
taxmap/pubs/p505-023.htm#en_us_publink1000194863

Line 1b.(p54)

rule
Apply the payments listed to underpayment balance in the first column until it is fully paid. Apply payments in the order made.
taxmap/pubs/p505-023.htm#en_us_publink1000194864

Figuring the penalty.(p54)

rule
If an underpayment was paid in two or more payments on different dates, you must figure the penalty separately for each payment. On line 3 of the Penalty Worksheet enter the number of days between the due date (line 2) and the date of each payment on line 1b. On line 4 figure the penalty for the amount of each payment applied on line 1b or the amount remaining unpaid. If no payments are applied, figure the penalty on the amount on line 1a.
taxmap/pubs/p505-023.htm#en_us_publink1000194865
Aid for counting days.(p54)
Table 4-1 provides a simple method for counting the number of days between a due date and a payment date.
  1. Find the number for the date the payment was due by going across to the column of the month the payment was due and moving down the column to the due date.
  2. In the same manner, find the number for the date the payment was made.
  3. Subtract the due date "number" from the payment date "number."
For example, if a payment was due on June 15 (61), but was not paid until September 1 (139), the payment was 78 (139 – 61) days late.
taxmap/pubs/p505-023.htm#en_us_publink1000194867

Table 4-1.Calendar To Determine the Number of Days a Payment Is Late

Instructions. Use this table with Form 2210 if you are completing Part IV, Section B. First, find the number for the payment due date by going across to the column of the month the payment was due and moving down the column to the due date. Then, in the same manner, find the number for the date the payment was made. Finally, subtract the due date number from the payment date number. The result is the number of days the payment is late.

Example. The payment due date is June 15 (61). The payment was made on November 4 (203). The payment is 142 days late (203 – 61).

Tax Year 2013
Day of2013201320132013201320132013201320132014201420142014
MonthAprilMayJuneJulyAug.Sept.Oct.Nov.Dec.Jan.Feb.Mar.Apr.
1 164777108139169200230261292320351
2 174878109140170201231262293321352
3 184979110141171202232263294322353
4 195080111142172203233264295323354
5 205181112143173204234265296324355
6 215282113144174205235266297325356
7 225383114145175206236267298326357
8 235484115146176207237268299327358
9 245585116147177208238269300328359
10 255686117148178209239270301329360
11 265787118149179210240271302330361
12 275888119150180211241272303331362
13 285989120151181212242273304332363
14 296090121152182213243274305333364
150306191122153183214244275306334365
161316292123154184215245276307335 
172326393124155185216246277308336 
183336494125156186217247278309337 
194346595126157187218248279310338 
205356696127158188219249280311339 
216366797128159189220250281312340 
227376898129160190221251282313341 
238386999130161191222252283314342 
2493970100131162192223253284315343 
25104071101132163193224254285316344 
26114172102133164194225255286317345 
27124273103134165195226256287318346 
28134374104135166196227257288319347 
29144475105136167197228258289 348 
30154576106137168198229259290 349 
31 46 107138 199 260291 350