- quote -

I had to go back and read the previous posts just to find
out to whom you are replying. Please don't snip that part.

- quote -

Well, partly "wrong" anyway. IRS doesn't care if you fill
it out or not. It is an option. What's amazing sometimes
is the case where the client's return included the 2210 but
IRS mails them one anyway!

- quote -

With today's software, a "lot more work" may entail an
extra 5 to 8 minutes. But at least we get to charge for
it. (grin)

ChEAr$,
Harlan Lunsford, EA n LA

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- quote -

Wrong. There are two ways of calculating the penalty: one
very easy which the IRS uses, and the other using 2210/2210AI.
If your income is weighted toward the beginning of the year,
the simpler equal-quarter method results in lower penalties
and slower paying of taxes, because it assumes income is
evenly distrbuted through the year.

The alternative annualization method works better for people
who have income weighted later in the year, e.g. mutual fund
distribution and salespeople who close deals end of year.
But the tax forms take a lot more work.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

<nativecrafts[at]gmail.com> wrote:

- quote -

Yes. You just haven't gotten deep enough into the form yet.

Taxes withheld can automatically count as evenly made
throughout the tax year, and the language above applies this
test and checks whether no penalty is due.

If you don't meet that test, then you usually must use the
annualized method in which the exact amounts (withheld and
estimated payments) are applied for each period.

Steve

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Form 2210 is confusing the first time you use it because
there is an intermediate step in their calculations where if
Total Taxes minus only Withholding is less than $1,000, you
don't owe a penalty ( that is you don't owe any installments
in addition to your Withholding to avoid a penalty).

If that figure, Taxes less Withholding, is more than $1,000,
you continue on and the other calculations apply, such as if
90% of current year's tax and/or the amount of last years
tax was paid with Withholding and/or 4 equal and on-time
installments the Penalty (or lack of penalty) can be
figured on the "short Method").

If your installments weren't on time, or equal, it goes on
to figure your Penalty on the Regular Method (and you can
apply the Withholding in the quarters withheld instead or
"averaging" it over the 4 quarters).

If your INCOME wasn't equal in the 4 "quarters", There is
an optional method to figure your Penalty using the
Annualized Income Method.

ed

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

nativecrafts[at]gmail.com wrote:

- quote -

The IRS does not want you to fill out the 2210. Let them
send you a bill for any interest or penalties for which may
be due. Just report what you sent in for estimates on the
proper line on form 1040.

Missy Doyle

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

<nativecrafts[at]gmail.com> wrote:

- quote -

Yes. You just haven't gotten deep enough into the form yet.

Taxes withheld can automatically count as evenly made
throughout the tax year, and the language above applies this
test and checks whether no penalty is due.

If you don't meet that test, then you usually must use the
annualized method in which the exact amounts (withheld and
estimated payments) are applied for each period.

Steve

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Form 2210 is confusing the first time you use it because
there is an intermediate step in their calculations where if
Total Taxes minus only Withholding is less than $1,000, you
don't owe a penalty ( that is you don't owe any installments
in addition to your Withholding to avoid a penalty).

If that figure, Taxes less Withholding, is more than $1,000,
you continue on and the other calculations apply, such as if
90% of current year's tax and/or the amount of last years
tax was paid with Withholding and/or 4 equal and on-time
installments the Penalty (or lack of penalty) can be
figured on the "short Method").

If your installments weren't on time, or equal, it goes on
to figure your Penalty on the Regular Method (and you can
apply the Withholding in the quarters withheld instead or
"averaging" it over the 4 quarters).

If your INCOME wasn't equal in the 4 "quarters", There is
an optional method to figure your Penalty using the
Annualized Income Method.

ed

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

nativecrafts[at]gmail.com wrote:

- quote -

The IRS does not want you to fill out the 2210. Let them
send you a bill for any interest or penalties for which may
be due. Just report what you sent in for estimates on the
proper line on form 1040.

Missy Doyle

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

nativecrafts[at]gmail.com wrote:

- quote -

You didn't read the form far enough. All these lines do is
calculate how much, if any, estimated tax payments were
required. Further down the form you compare this amount with
the actual estimated tax payments to see how much penalty, if
any, is applicable.

If the total of required payments, that is the actual tax
less withholdings, is less than $1,000, there is no penalty.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Could someone please enlighten me on this form 2210 for year
2005, I am so confused!
Line 6 says "Withholding taxes. Do not include Estimated Tax
payments."
Line 4 says "Total tax due this year"

If the amount in line 6 - amount in line 4 is less than
$1000, no penalty assessed.

But I was surprised why we are not allowed to add estimated
tax paid in line 6? Isn't the purpose of estimates tax
payment to avoid underpayent penalty?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >