Form 2210 - Underpayment Of Estimated Tax By Individuals, Estates and Trusts

Form 2210 is used to determine if a penalty is owed for the underpayment of income taxes due. It's typically used by individuals, estates, and trusts to calculate the amount of underpaid estimated tax and resulting penalties. Additionally, it can be used to request a waiver of the penalty if certain conditions are met.

What is the purpose of IRS Form 2210?

The purpose of IRS Form 2210 is to figure out whether you underpaid your estimated taxes and calculate the penalty you owe.

What is an underpayment of estimated tax?

An underpayment of estimated tax occurs when the amount you paid towards your quarterly estimated tax was less than what you actually owe the IRS, resulting in an underpayment penalty.

How much is my underpayment penalty?

The amount of your underpayment penalty will depend on how much tax you owe, how much you underpaid by, how many times you underpaid during the year, the interest rate for the penalty, and how many days you were late paying. You can calculate your exact penalty using the worksheet on page 7 of the instructions to Form 2210.