Publication 505 - Tax Withholding And Estimated Tax Page 40
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49Table 4-1. Calendar to Determine Number of Days a Payment is Late
Instructions. First, find the number for the payment due date. Then, find the number for the date the payment was made. Finally, subtract
the payment due date number from the payment date number. The answer 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 2001
Day of
2001
2001
2001
2001
2001
2001
2001
2001
2001
2002
2002
2002
2002
Month
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
March
April
1
16
47
77
108
139
169
200
230
261
292
320
351
2
17
48
78
109
140
170
201
231
262
293
321
352
3
18
49
79
110
141
171
202
232
263
294
322
353
4
19
50
80
111
142
172
203
233
264
295
323
354
5
20
51
81
112
143
173
204
234
265
296
324
355
6
21
52
82
113
144
174
205
235
266
297
325
356
7
22
53
83
114
145
175
206
236
267
298
326
357
8
23
54
84
115
146
176
207
237
268
299
327
358
9
24
55
85
116
147
177
208
238
269
300
328
359
10
25
56
86
117
148
178
209
239
270
301
329
360
11
26
57
87
118
149
179
210
240
271
302
330
361
12
27
58
88
119
150
180
211
241
272
303
331
362
13
28
59
89
120
151
181
212
242
273
304
332
363
14
29
60
90
121
152
182
213
243
274
305
333
364
15
0
30
61
91
122
153
183
214
244
275
306
334
365
16
1
31
62
92
123
154
184
215
245
276
307
335
17
2
32
63
93
124
155
185
216
246
277
308
336
18
3
33
64
94
125
156
186
217
247
278
309
337
19
4
34
65
95
126
157
187
218
248
279
310
338
20
5
35
66
96
127
158
188
219
249
280
311
339
21
6
36
67
97
128
159
189
220
250
281
312
340
22
7
37
68
98
129
160
190
221
251
282
313
341
23
8
38
69
99
130
161
191
222
252
283
314
342
24
9
39
70
100
131
162
192
223
253
284
315
343
25
10
40
71
101
132
163
193
224
254
285
316
344
26
11
41
72
102
133
164
194
225
255
286
317
345
27
12
42
73
103
134
165
195
226
256
287
318
346
28
13
43
74
104
135
166
196
227
257
288
319
347
29
14
44
75
105
136
167
197
228
258
289
348
30
15
45
76
106
137
168
198
229
259
290
349
31
46
107
138
199
260
291
350
Annualized Income Installment
If you use your actual withholding, you must
($6,116), Ben knows he owes a penalty for un-
check the box on line 1c, Part I of Form 2210 and
Method (Schedule AI)
derpayment of estimated tax. He decides to fig-
complete Form 2210 and file it with your return.
ure the penalty on Form 2210 and pay it with his
If you did not receive your income evenly
$1,803 tax balance ($7,031 − $5,228) when he
throughout the year (for example, your income
files his tax return on April 15, 2002.
Regular Installment Method
from a repair shop you operated was much
Ben’s required annual payment (Part II, line
larger in the summer than it was during the rest
The filled-in form for the following example is
14) is $6,116. Because his income and withhold-
of the year), you may be able to lower or elimi-
shown at the end of this chapter.
ing were distributed evenly throughout the year,
nate your penalty by figuring your underpayment
Ben enters one-fourth of his required annual
using the annualized income installment
Example 4.6. Ben Brown’s 2001 total tax
method. Under this method, your required in-
payment, $1,529, in each column of line 22. On
(Form 1040, line 58) is $7,031, the total of his
stallment (line 22) for one or more payment
line 23, he enters one-fourth of his withholding,
$4,685 income tax and $2,346 self-employment
periods may be less than one-fourth of your
$807 in the first two columns and $1,807 ($807
tax. (His 2000 AGI was less than $150,000.) He
required annual payment.
plus $1,000 estimated tax payment) in the last
does not owe any other taxes or claim any cred-
To figure your underpayment using this
two columns.
its other than for withholding. His 2000 tax was
method, complete Schedule AI of Form 2210.
$6,116.
Ben has an underpayment (line 29) for each
The schedule annualizes your tax at the end of
Ben’s employer withheld $3,228 income tax
payment period even though his withholding and
each payment period based on your income,
during 2001. Ben made no estimated tax pay-
estimated tax payments for the third and fourth
deductions, and other items relating to events
ment for either the first or second period, but he
periods were more than his required install-
that occurred since the beginning of the tax year
paid $1,000 each on September 2, 2001, and
ments (line 22). This is because the estimated
through the end of the period.
January 12, 2002, for the third and fourth peri-
tax payments made in the third and fourth peri-
If you use the annualized income installment
ods. Because the total of his withholding and
ods are first applied to underpayments for the
method, you must check the box on line 1b of
estimated tax payments, $5,228 ($3,228 +
earlier periods. Part IV, Section A, of Ben’s Form
$1,000 + $1,000), was less than 90% of his 2001
Form 2210. You also must attach Form 2210
tax ($6,328), and was also less than his 2000 tax
2210 is shown at the end of this chapter.
and Schedule AI to your return.
Page 40
Chapter 4 Underpayment Penalty for 2001
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