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Posted by ed on April 8, 2008, 12:54 pm
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On Apr 7, 6:37 pm, davidegrif...@gmail.com wrote:
> Hello, I have two questions re Form 2210. For 2007, I find I've
> underpaid estimated taxes and thus subject to a penalty. However, I
> retired in the previous tax year (2006) at age 63 and understand I can
> request a waiver for that reason. Questions: 1) How extensive should
> the explanation statement be? and 2) what does the IRS consider the
> "paid" date to be -- the date the payment is postmarked or the date
> actually received by the IRS? Thanks very much for your help.
>
> --
> << ------------------------------------------------------- >>
> << 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 atwww.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>
The paid date for a late payment is the date the IRS recieved it, not
the mailing date as it is for on time payments.
I suppose any excuse, even senality or ignorance of the law, will work
if they believe you.
I don't know our circumstances, but often using the form 2210
Annualized Income Method to compute your penalty can substantially
reduce the penalty because of mutual fund distributions being in
December , paying home taxes in January or February distorting your
Schedule A Itemized Deductions, and capital loss carrovers. In the
future plan these items and compute the AI installments . Defer any
IRA /pension withdrawals to after September 1 and withhold from them
what you would have paid in installments. The end result is to lower
your initial installments and avoid any inadvertant underpayments and
penalties.
ed
--
<< ------------------------------------------------------- >>
<< 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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