2210 Underpayment of Estimated Tax by Individuals, Estates, a

U.S. Individual Income Tax Return

2210 (Form)

U.S. Individual Income Tax Return

OMB: 1545-0074

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2007 Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Purpose: This is the first circulation draft of the 2007 Form 2210 for your review and
comments. See below for a discussion of the major changes.
TPCC Meeting: None, but one may be arranged if requested.
Prior Versions: The 2006 Form 2210 is available at:
http://www.irs.gov/pub/irs-pdf/f2210.pdf
Instructions: The 2007 Instructions for Form 2210 will be circulated at a later date. The
2006 instructions are available at:
http://www.irs.gov/pub/irs-pdf/i2210.pdf
Other products: Circulation of draft tax forms, instructions, notices, and publications
are posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, fax, call or mail me using information below and
Judy Pohlmann, (Reviewer) judith.l.pohlmann@irs.gov, with any
comments by July 23, 2007.
Shirley A.E. White - TLS
Tax Forms & Publications Rm. 6423
SE:W:CAR:MP:T:I:F
shirley.a.white@irs.gov
(202) 622-3147 Phone
(202-927-6234 Fax

Description of Major Changes for
2007 Form 2210,
Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Page 1
• On line 3, the refundable credit for prior year minimum tax was added to the list of
refundable credits. P.L. 109-432, Div A, Title IV, § 402 and IRC 6654(f)(3)
• Part II, item D, has been clarified. Federal income tax withheld on income from all
sources can be treated as paid on the date withheld, not only tax withheld from
wages.
Page 2
• The second item under “You may use the short method if:“ has been clarified.
•

On line 15, the factor is yet to be determined. The line 15 factor is the sum of all the
factors for all rating periods for all installments applicable to the rate period
(rounded to 5 decimal places). The factor will be computed as follows: interest rate
for the rate period x the number of days that rate is applicable for that
installment/total days in the year (365 for 2007 / 366 for 2008) ÷ by 4.

o The information concerning the special rate for Katrina was deleted as that is
no longer applicable.
•

On line 16, the factor is yet to be determined. This factor is determined by dividing
the interest rate for the first quarter of 2008 (TBD) by the number of days in 2008
(366).

•

On line 17, the references for Forms 1040A and 1040NR-EZ were revised to reflect
changes on those forms.

Page 3
• Section B: the rate is only available for April 16 – September 30. This section will
need to be adjusted as interest rates are known. The latest possible date on Rate
Period 1 will be December 31, 2007.
o On line 28, rate for quarters 1 – 3 is .08. (Quarters 1 and 2, Rev. Rul. 200716)(Quarter 3, per Raymond Bailey(CC:PA:01))
•

On line 31, the references for Forms 1040A and 1040NR-EZ were revised to reflect
changes on those forms.

Page 4
• On line 6, the itemized deduction limitation amount was revised. (Rev. Proc. 200653)
•

On line 10, the exemption amount and phase out amount was revised. (Rev. Proc.
2006-53)

•

On Line 27, the prorated social security amount was revised for each period.
(Notice 2006-102)

o The information concerning the special rate for Katrina was deleted as that is
no longer applicable.
•

On line 16, the factor is yet to be determined. This factor is determined by dividing
the interest rate for the first quarter of 2008 (TBD) by the number of days in 2008
(366).

•

On line 17, the references for Forms 1040A and 1040NR-EZ were revised to reflect
changes on those forms.

On line 31, the references for Forms 1040A and 1040NR-EZ were revised to reflect
changes on those forms.

Page 4
• On line 6, the itemized deduction limitation amount was revised. (Rev. Proc. 200653)
•

On line 10, the exemption amount and phase out amount was revised. (Rev. Proc.
2006-53)

•

On Line 27, the prorated social security amount was revised for each period.
(Notice 2006-102)

1
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transmitted all R
text files for this
cycle update?

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 2210, PAGE 1 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 406mm (16") 3 279mm (11"), FOLD TO 203mm (8") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Date

Form

2210

Department of the Treasury
Internal Revenue Service

Action

Date

O.K. to print
Revised proofs
requested

Underpayment of
Estimated Tax by Individuals, Estates, and Trusts
©

OMB No. 1545-0140

2007

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See separate instructions.
Attach to Form 1040, 1040A, 1040NR, 1040NR-EZ, or 1041.

Name(s) shown on tax return

Signature

Attachment
Sequence No.

Identifying number

Do You Have To File Form 2210?
Complete lines 1 through 7 below. Is line 7 less than $1,000?
Ä

Complete lines 8 and 9 below. Is line 6 equal to or more
than line 9?
Ä

You may owe a penalty. Does any box in Part II below apply?

Yes

You do not owe a penalty. Do not file Form 2210 (but
© if box E below applies, you must file page 1 of
Form 2210).

Yes

Part I
1
2
3

4
5
6
7
8
9

B
C
D

You are not required to figure your penalty because
the IRS will figure it and send you a bill for any unpaid
amount. If you want to figure it, you may use Part III
or Part IV as a worksheet and enter your penalty
amount on your tax return, but file only page 1 of
Form 2210.

(see page 2 of the instructions)

1
Enter your 2007 tax after credits from Form 1040, line 57 (or comparable line of your return)
2
Other taxes, including self-employment tax (see page 3 of the instructions)
Refundable credits. Enter the total of your earned income credit, additional child tax credit, credit
for federal tax paid on fuels, health coverage tax credit, and refundable credit for prior year
)
3 (
minimum tax
Current year tax. Combine lines 1, 2, and 3. If less than $1,000, you do not owe a penalty;
4
do not file Form 2210
5
Multiply line 4 by 90% (.90)
6
Withholding taxes. Do not include estimated tax payments. See page 3 of the instructions
7
Subtract line 6 from line 4. If less than $1,000, you do not owe a penalty; do not file Form 2210
8
Maximum required annual payment based on prior year’s tax (see page 3 of the instructions)
9
Required annual payment. Enter the smaller of line 5 or line 8
Next: Is line 9 more than line 6?
No. You do not owe a penalty. Do not file Form 2210 unless box E below applies.
Yes. You may owe a penalty, but do not file Form 2210 unless one or more boxes in Part II below applies.
● If box B, C, or D applies, you must figure your penalty and file Form 2210.
● If only box A or E (or both) applies, file only page 1 of Form 2210. You are not required to figure your penalty; the IRS
will figure it and send you a bill for any unpaid amount. If you want to figure your penalty, you may use Part III or IV as
a worksheet and enter your penalty on your tax return, but file only page 1 of Form 2210.

Part II
A

Required Annual Payment

Ä
Do not file Form 2210. You are not required to figure
your penalty because the IRS will figure it and send
you a bill for any unpaid amount. If you want to figure
it, you may use Part III or Part IV as a worksheet and
enter your penalty amount on your tax return, but do
not file Form 2210.

Reasons for Filing. Check applicable boxes. If none apply, do not file Form 2210.
You request a waiver (see page 2 of the instructions) of your entire penalty. You must check this box and file page 1
of Form 2210, but you are not required to figure your penalty.
You request a waiver (see page 2 of the instructions) of part of your penalty. You must figure your penalty and waiver
amount and file Form 2210.
Your income varied during the year and your penalty is reduced or eliminated when figured using the annualized
income installment method. You must figure the penalty using Schedule Al and file Form 2210.
Your penalty is lower when figured by treating the federal income tax withheld from your income as paid on the
dates it was actually withheld, instead of in equal amounts on the payment due dates. You must figure your penalty
and file Form 2210.
You filed or are filing a joint return for either 2006 or 2007, but not for both years, and line 8 above is smaller than
line 5 above. You must file page 1 of Form 2210, but you are not required to figure your penalty (unless box B,
C, or D applies).

For Paperwork Reduction Act Notice, see page 7 of separate instructions.

Cat. No. 11744P

Form

2210

(2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 2210, PAGE 2 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 406mm (16") 3 279mm (11"), FOLD TO 203mm (8") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 2210 (2007)

Part III

TIP

Short Method

You do not need to
file Form 2210 unless
you checked a box in
Part II on page 1.

Page

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You may use the short method if:
● You made no estimated tax payments (or your only payments were
withheld federal income tax), or
● You paid the same amount of estimated tax on each of the four
payment due dates.
You must use the regular method (Part IV) instead of the short method if:
● You made any estimated tax payments late,
● You checked box C or D in Part II, or
● You are filing Form 1040NR or 1040NR-EZ and you did not receive
wages as an employee subject to U.S. income tax withholding.
Note: If any payment was made earlier than the due date, you may use the
short method, but using it may cause you to pay a larger penalty than the
regular method. If the payment was only a few days early, the difference is
likely to be small.

Enter the amount from Form 2210, line 9

Enter the amount, if any, from Form 2210, line 6

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

13
14

Add lines 11 and 12
Total underpayment for year. Subtract line 13 from line 10. If zero or less, stop here; you do
not owe the penalty. Do not file Form 2210 unless you checked box E on page 1
Multiply line 14 by .0XXXX

15
16

● If the amount on line 14 was paid on or after 4/15/08, enter -0-.
● If the amount on line 14 was paid before 4/15/08, make the following computation to find the
amount to enter on line 16.
Amount on Number of days paid
3 before 4/15/08
3 .000XX
line 14
Penalty. Subtract line 16 from line 15. Enter the result here and on Form 1040, line 77; Form
©
1040A, line 47; Form 1040NR, line 75; Form 1040NR-EZ, line 26; or Form 1041, line 26

13
14
15

16
17
Form

2210

(2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 2210, PAGE 3 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 406mm (16") 3 279mm (11"), FOLD TO 203mm (8") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 2210 (2007)

Page

Part IV

Regular Method (See page 3 of the instructions if you are filing Form 1040NR or 1040NR-EZ.)
Payment Due Dates
Section A—Figure Your Underpayment
(a)
(b)
(c)
(d)
4/15/07
18

20
21
22
23
24
25

Required installments. If box C in Part II applies, enter
the amounts from Schedule AI, line 25. Otherwise, enter
25% (.25) of line 9, Form 2210, in each column
Estimated tax paid and tax withheld (see page 3 of
the instructions). For column (a) only, also enter the
amount from line 19 on line 23. If line 19 is equal to
or more than line 18 for all payment periods, stop
here; you do not owe a penalty. Do not file Form
2210 unless you checked a box in Part II
Complete lines 20 through 26 of one column
before going to line 20 of the next column.
Enter the amount, if any, from line 26 in the previous
column
Add lines 19 and 20
Add the amounts on lines 24 and 25 in the previous column
Subtract line 22 from line 21. If zero or less, enter -0-.
For column (a) only, enter the amount from line 19
If line 23 is zero, subtract line 21 from line 22.
Otherwise, enter -0-

s
a

6/15/07

9/15/07

1/15/08

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20
21
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Underpayment. If line 18 is equal to or more than
line 23, subtract line 23 from line 18. Then go to line
20 of the next column. Otherwise, go to line 26 ©
Overpayment. If line 23 is more than line 18, subtract line
18 from line 23. Then go to line 20 of the next column

23
24

25
26

Rate Period 2

Rate Period 1

Section B—Figure the Penalty (Complete lines 27 through 30 of one column before going to the next column.)

4/15/07

April 16, 2007—September 30, 2007
Number of days from the date shown above
line 27 to the date the amount on line 25 was
paid or 9/30/07, whichever is earlier

Underpayment on line 25
Number of
(see page 4 of
days on line 27
3
3 .08
the instructions)
365

28 $

Days:

6/15/07
Days:

12/31/07

January 1, 2008—April 15, 2008

Days:

Number of days from the date shown above
line 29 to the date the amount on line 25 was
paid or 4/15/08, whichever is earlier

Underpayment on line 25
Number of
(see page 5 of
days on line 29
3
3 .08
the instructions)
366

30 $

9/15/07
Days:

$
12/31/07

Days:

12/31/07
Days:

Penalty. Add all amounts on lines 28 and 30 in all columns. Enter the total here and on Form 1040,
line 77; Form 1040A, line 47; Form 1040NR, line 75; Form 1040NR-EZ, line 26; or Form 1041, line
©
26; but do not file Form 2210 unless you checked a box in Part II

1/15/08
Days:

31 $
Form

2210

(2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 2210, PAGE 4 OF 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 406mm (16") 3 279mm (11"), FOLD TO 203mm (8") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 2210 (2007)

Page

Schedule AI—Annualized Income Installment Method (See pages 5, 6, and 7 of the instructions.)

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Estates and trusts, do not use the period ending dates shown to the right.
Instead, use the following: 2/28/07, 4/30/07, 7/31/07, and 11/30/07.

Part I
1

2
3
4

5
6
7

8
9
10

11
12
13
14
15
16
17
18
19

20
21
22
23
24
25

29
30
31
32
33
34

(b)
1/1/07–5/31/07

(d)
1/1/07–12/31/07

Annualized Income Installments

Enter your adjusted gross income for each period (see instructions).
(Estates and trusts, enter your taxable income without your
exemption for each period.)
Annualization amounts. (Estates and trusts, see instructions.)
Annualized income. Multiply line 1 by line 2

1
2
3

2.4

1.5

Enter your itemized deductions for the period shown in each column.
If you do not itemize, enter -0- and skip to line 7. (Estates and trusts,
enter -0-, skip to line 9, and enter the amount from line 3 on line 9.)
Annualization amounts
Multiply line 4 by line 5 (see instructions if line 3 is more than $78,200)

4
5
6

2.4

1.5

In each column, enter the full amount of your standard deduction
from Form 1040, line 40, or Form 1040A, line 24 (Form 1040NR or
1040NR-EZ filers, enter -0-. Exception: Indian students and
business apprentices, enter standard deduction from Form 1040NR,
line 37, or Form 1040NR-EZ, line 11.)
Enter the larger of line 6 or line 7
Subtract line 8 from line 3

7
8
9

22.5%

45%

67.5%

90%

$24,375

$40,625

$65,000

$97,500

0.496

0.2976

0.186

0.124

0.116

0.0696

0.0435

0.029

In each column, multiply $3,400 by the total number of exemptions
claimed (see instructions if line 3 is more than $117,300). (Estates
and trusts and Form 1040NR or 1040NR-EZ filers, enter the
exemption amount shown on your tax return.)
Subtract line 10 from line 9
Figure your tax on the amount on line 11 (see instructions)
Self-employment tax from line 34 below (complete Part II)
Enter other taxes for each payment period (see instructions)
Total tax. Add lines 12, 13, and 14
For each period, enter the same type of credits as allowed on Form
2210, lines 1 and 3 (see instructions)
Subtract line 16 from line 15. If zero or less, enter -0Applicable percentage
Multiply line 17 by line 18
Complete lines 20–25 of one column before going to line 20 of
the next column.
Enter the total of the amounts in all previous columns of line 25
Subtract line 20 from line 19. If zero or less, enter -0Enter 25% (.25) of line 9 on page 1 of Form 2210 in each column
Subtract line 25 of the previous column from line 24 of that
column
Add lines 22 and 23
Enter the smaller of line 21 or line 24 here and on Form 2210,
©
line 18

Part II
26
27
28

(a)
1/1/07–3/31/07

10
11
12
13
14
15
16
17
18
19

20
21
22
23
24
25

Annualized Self-Employment Tax (Form 1040 filers only)

Net earnings from self-employment for the period (see instructions)
Prorated social security tax limit
Enter actual wages for the period subject to social security tax or
the 6.2% portion of the 7.65% railroad retirement (tier 1) tax
Subtract line 28 from line 27. If zero or less, enter -0Annualization amounts
Multiply line 30 by the smaller of line 26 or line 29
Annualization amounts
Multiply line 26 by line 32
©
Add lines 31 and 33. Enter here and on line 13 above

26
27
28
29
30
31
32
33
34

Form

Printed on recycled paper

2210

(2007)

File Type	application/pdf
File Title	Description of Major Changes for
Author	03nbb
File Modified	2007-06-13
File Created	2007-06-11