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Who Must Pay the

See chapter 2 of Pub. 505, Tax Withholding and Estimated

Tax, for the definition of gross income from farming and fishing.

Underpayment Penalty

If you meet test 1 but not test 2, use Form 2210-F,

Underpayment of Estimated Tax by Farmers and Fishermen, to

In general, you may owe the penalty for 2017 if the total of your

see if you owe a penalty. If you don't meet test 1, use Form

withholding and timely estimated tax payments didn't equal at

2210.

least the smaller of:

1. 90% of your 2017 tax, or

Waiver of Penalty

2. 100% of your 2016 tax. Your 2016 tax return must cover a

If you have an underpayment, all or part of the penalty for that

12-month period.

underpayment will be waived if the IRS determines that:

In 2016 or 2017, you retired after reaching age 62 or became

Special rules for certain individuals. Different percentages

disabled, and your underpayment was due to reasonable cause

are used for farmers and fishermen, and certain higher income

(and not willful neglect), or

taxpayers.

The underpayment was due to a casualty, disaster, or other

Farmers and fishermen. If at least two-thirds of your gross

unusual circumstance, and it would be inequitable to impose the

income for 2016 or 2017 is from farming and fishing, substitute

penalty. For federally declared disaster areas, see Federally

% for 90% in (1) above. See Farmers and fishermen, later,

2 3

declared disaster, later.

to see if you qualify.

To request any of the above waivers, do the following.

Higher income taxpayers. If your adjusted gross income

(AGI) for 2016 was more than $150,000 ($75,000 if your 2016

1. Check box A or box B in Part II.

filing status is married filing separately), substitute 110% for

a. If you checked box A, complete only page 1 of Form 2210

100% in (2) above.

and attach it to your tax return (you aren't required to figure the

amount of penalty to be waived).

Penalty figured separately for each required payment. The

penalty is figured separately for each installment due date.

b. If you checked box B, complete Form 2210 through

Therefore, you may owe the penalty for an earlier due date even

line 16 (or if you use the regular method, line 26 plus the penalty

if you paid enough tax later to make up the underpayment. This

worksheet, later) without regard to the waiver. Enter the amount

is true even if you are due a refund when you file your tax return.

you want waived in parentheses on the dotted line next to line 17

However, you may be able to reduce or eliminate the penalty by

(line 27 for the regular method). Subtract this amount from the

using the annualized income installment method. For details,

total penalty you figured without regard to the waiver, and enter

see the Schedule AI instructions later.

the result on line 17 (line 27 for the regular method).

Return. In these instructions, “return” refers to your original

2. Attach Form 2210 and a statement to your return

return. However, an amended return is considered the original

explaining the reasons you were unable to meet the estimated

return if it is filed by the due date (including extensions) of the

tax requirements and the time period for which you are

original return. Also, a joint return that replaces previously filed

requesting a waiver.

separate returns is considered the original return.

3. If you are requesting a waiver due to retirement or

disability, attach documentation that shows your retirement date

Exceptions to the Penalty

(and your age on that date) or the date you became disabled.

You won't have to pay the penalty or file this form if either of the

4. If you are requesting a waiver due to a casualty, disaster

following applies.

(other than a federally declared disaster as discussed next), or

You had no tax liability for 2016, you were a U.S. citizen or

other unusual circumstance, attach documentation such as

resident alien for the entire year (or an estate of a domestic

copies of police and insurance company reports.

decedent or a domestic trust), and your 2016 tax return was (or

The IRS will review the information you provide and decide

would have been had you been required to file) for a full 12

whether to grant your request for a waiver.

months.

The total tax shown on your 2017 return minus the amount of

Federally declared disaster. Certain estimated tax payment

tax you paid through withholding is less than $1,000. To

deadlines for taxpayers who reside or have a business in a

determine whether the total tax is less than $1,000, complete

federally declared disaster area are postponed for a period

Part I, lines 1 through 7.

during and after the disaster. During the processing of your tax

return, the IRS automatically identifies taxpayers located in a

Estates and trusts. No penalty applies to either of the

covered disaster area (by county or parish) and applies the

following.

appropriate penalty relief. Don't file Form 2210 if your

A decedent's estate for any tax year ending before the date

underpayment was due to a federally declared disaster. If you

that is 2 years after the decedent's death.

still owe a penalty after the automatic waiver is applied, the IRS

A trust that was treated as owned by the decedent if the trust

will send you a bill.

will receive the residue of the decedent's estate under the will (or

if no will is admitted to probate, the trust primarily responsible for

An individual or a fiduciary for an estate or trust not in a

paying debts, taxes, and expenses of administration) for any tax

covered disaster area but whose books, records, or tax

year ending before the date that is 2 years after the decedent's

professionals' offices are in a covered area is also entitled to

death.

relief. Also eligible are relief workers affiliated with a recognized

government or charitable organization assisting in the relief

Farmers and fishermen. If you meet both tests 1 and 2 below,

activities in a covered disaster area. If you meet either of these

you don't owe a penalty for underpaying estimated tax.

eligibility requirements, you must call the IRS disaster hotline at

1. Your gross income from farming or fishing is at least

1-866-562-5227 and identify yourself as eligible for this relief.

two-thirds of your annual gross income from all sources for 2016

Details on the applicable disaster postponement period can be

or 2017.

found at IRS.gov. Enter "disaster relief" in the search box, then

2. You filed Form 1040 or 1041 and paid the entire tax due

select “Tax Relief in Disaster Situations.” Select the federally

by March 1, 2018.

declared disaster that affected you. See Pub. 505, chapter 4, for

more details. For guidance on figuring estimated taxes for trusts

and certain estates, see Notice 87-32, 1987-1 C.B. 477.

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Instructions for Form 2210 (2017)

Instructions For Form 2210 - Underpayment Of Estimated Tax By Individuals, Estates, And Trusts - 2017 Page 2

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