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Posted by wangold386@yahoo.com on May 12, 2008, 5:22 pm
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Hi, I recently learned about estimated taxes and consequently was late for
my first (April 15, 2008) payment. I called the IRS about this and they
said thay when I file my 2008 return to include a Form 2210 to figure out
the penalty. This weekend, I ran through a sample 2210 and realized that
my late first payment was an OVERpayment for what I owed that quarter.
Upon closer inspection, it looks like Form 2210 is only for UNDERpayments,
not DELAYED payments. Since I didn't underpay, will I still need to file a
2210? And will I be assessed a penalty for the delayed payment? Thanks
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Posted by Bill on May 12, 2008, 6:35 pm
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wangold386@yahoo.com posted:
>Hi, I recently learned about estimated taxes
>and consequently was late for my first (April
>15, 2008) payment. I called the IRS about this
>and they said thay when I file my 2008 return
>to include a Form 2210 to figure out the
>penalty. This weekend, I ran through a sample
>2210 and realized that my late first payment
>was an OVERpayment for what I owed that
>quarter. Upon closer inspection, it looks like
>Form 2210 is only for UNDERpayments, not
>DELAYED payments. Since I didn't underpay,
>will I still need to file a 2210? And will I be
>assessed a penalty for the delayed payment?
The rules exemplified by Form 2210 are one thing; realistic practices
may be something else.
The following is not tax law, but practical experience:
I filed exclusively by making Estimated Tax payments for 15 years --
until I got smart a few years ago, and started arranging for withholding
from my RMD's. However, over that 15-year period, I "forgot" at least 4
or 5 quarterly payments. Suddenly, in late August, I would realize
there wasn't a payment made in June -- or in mid November, I would wake
up to the fact that I missed a September 15 payment.
In every case, I immediately wrote a payment and sent it in with the
"coupon" for the date which I had missed. I was also careful to make
sure my total estimated payments came _very_ close to the amount due.
Sometimes, I owed $40 or $50 ... sometimes I got a minor refund.
(My most triumphant year, was the time I got a $1 refund ... which was
the first time I "tried out" direct deposit -- figuring I could live
without the $1 -- which turned out to be no problem. I was then able to
promise taxpayers that direct deposit worked, and fast.)
Never did I receive a notice of delinquency or a bill for "under-" or
"late-payment" of my Estimated Tax.
So pay attention to the rules, but don't sweat the little things. If
you make the rest of your payments timely, and your calculations are
correct that you will wind up overpaying, I think it's safe to say you
won't get penalized.
Bill
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by wangold386@yahoo.com on May 13, 2008, 9:36 pm
Please log in for more thread options Bill wrote:
> So pay attention to the rules, but don't sweat the little things. If
> you make the rest of your payments timely, and your calculations are
> correct that you will wind up overpaying, I think it's safe to say you
> won't get penalized.
Thanks Bill. That may be what I do. I think I have a handle on my
payments now so I should be pretty close to the required amount by the end
of the year. If by some chance they do come after me, I'll show them the
filled-out 2210 form that shows the estimated annualized payments each
quarter vs the amount due. When they see my first quarter was an
overpayment (just a little bit late) and all other payments are correct and
on time, hopefully that will ward them off.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by removeps-groups@yahoo.com on May 12, 2008, 9:09 pm
Please log in for more thread options wrote:
> Hi, I recently learned about estimated taxes and consequently was late for
> my first (April 15, 2008) payment. I called the IRS about this and they
> said thay when I file my 2008 return to include a Form 2210 to figure out
> the penalty. This weekend, I ran through a sample 2210 and realized that
> my late first payment was an OVERpayment for what I owed that quarter.
> Upon closer inspection, it looks like Form 2210 is only for UNDERpayments,
> not DELAYED payments. Since I didn't underpay, will I still need to file a
> 2210? And will I be assessed a penalty for the delayed payment? Thanks
Form 2210 is for delayed payments. See the long method of form 2210
(part 4), lines 27 to 30, which ask for the number of days the payment
was late. So if you owe $1000 for April 15, but paid $1200 on May 15,
then the extra $200 is a free loan for the government on which you
don't receive interest, and you have penalty/interest on $1000 from
April 15 to May 15 which is 30 days, and at 6% a year we're looking at
0.06/12*1000=$5. If you leave the penalty field blank, the IRS will
calculate the penalty for you. I don't know how sophisticated their
computer program is and whether they will assess the $5, or more or
less.
What you could do is leave the field blank, and if their penalty is $5
or less then go with it, otherwise file an amended return with your
version of form 2210.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by wangold386@yahoo.com on May 13, 2008, 9:37 pm
Please log in for more thread options removeps-groups@yahoo.com wrote:
> wrote:
> Form 2210 is for delayed payments. See the long method of form 2210
> (part 4), lines 27 to 30, which ask for the number of days the payment
> was late. So if you owe $1000 for April 15, but paid $1200 on May 15,
> then the extra $200 is a free loan for the government on which you
> don't receive interest, and you have penalty/interest on $1000 from
> April 15 to May 15 which is 30 days, and at 6% a year we're looking at
> 0.06/12*1000=$5.
I see your logic, but the form doesn't seem to apply to an overpayment
situation.
I filled out the whole form, but when I got to the penalty section, it asks
for the amount UNDERpaid, and since I OVERpaid, there was no place for me
to put the amount. That's why I'm confused.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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