Form 2210 calculator for taxpayers who are liable to pay penalty for underpayment of estimated tax is based on the section §6654 of the Internal Revenue Code that is titled “Failure By Individual To Pay Estimated Income Tax.” This provision of law lays down the law for imposition of penalty for the failure to pay proper estimated tax by a taxpayer. Have you read Penalty for Underpayment of Estimated Tax Simplified and 7 faqs on penalty for underpayment of estimated tax , before you attempt to use the calculator given below for better understanding.
Special Rules for Farmers,Fishermen & High Income Group
There are special rules for farmers and fishermen, certain household employers and certain higher income taxpayers. For more information, refer to Publication 505, Tax Withholding and Estimated Tax. You can see the Form 2210.pdf, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to examine if you owe a penalty for underpaying your estimated tax.Important Points to Note
The law allows IRS to waive the penalty if:
- The reason for default of payment of estimated tax was on account of of a casualty event, disaster, or other unusual circumstance and or
- You retired (after reaching age 62) or became disabled during the tax year or in the preceding tax year for which you should have made estimated payments, and the underpayment was due to reasonable cause and not willful neglect.
The aforesaid estimated tax underpayment calculator is based on the latest instruction to file Form 2210.