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Subject Author Date
Interest on Underpayment Larry Israel 05-25-2007
Posted by Larry Israel on May 25, 2007, 1:41 pm
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 I have an extesion to file until June 15, so I am not in the
penalty area. However I just noticed that I had an
unexpected capital gain in December. I realize that I will
have to pay interest on my underpayment of estimated tax
since then, but what form can I fill out to prevent the IRS
from considering it spread out for the whole year?

<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
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Posted by James Lewis on May 25, 2007, 10:50 pm
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> I have an extesion to file until June 15, so I am not in the
> penalty area. However I just noticed that I had an
> unexpected capital gain in December. I realize that I will
> have to pay interest on my underpayment of estimated tax
> since then, but what form can I fill out to prevent the IRS
> from considering it spread out for the whole year?

If you are an individual, I know of no extension that only
goes to 6/15. It should extend the FILING date to 10/15.
Assuming you are an individual, use form 2210. On this form
you can show a large earnings in the last quarter and the
penalty will be based on that fact.

Mike

<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Ira Smilovitz on May 29, 2007, 10:44 pm
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>> I have an extesion to file until June 15, so I am not in the
>> penalty area. However I just noticed that I had an
>> unexpected capital gain in December. I realize that I will
>> have to pay interest on my underpayment of estimated tax
>> since then, but what form can I fill out to prevent the IRS
>> from considering it spread out for the whole year?

> If you are an individual, I know of no extension that only
> goes to 6/15. It should extend the FILING date to 10/15.
> Assuming you are an individual, use form 2210. On this form
> you can show a large earnings in the last quarter and the
> penalty will be based on that fact.

If you are out of the country on 4/15, you have an automatic
extension to 6/15 to file your tax return. You do not need
to file Form 4868, to avail yourself of this extension. See
the instructions for Form 4868 for details.

Ira Smilovitz

<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Arthur Kamlet on May 29, 2007, 10:44 pm
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>> I have an extesion to file until June 15, so I am not in the
>> penalty area. However I just noticed that I had an
>> unexpected capital gain in December. I realize that I will
>> have to pay interest on my underpayment of estimated tax
>> since then, but what form can I fill out to prevent the IRS
>> from considering it spread out for the whole year?

> If you are an individual, I know of no extension that only
> goes to 6/15. It should extend the FILING date to 10/15.
> Assuming you are an individual, use form 2210. On this form
> you can show a large earnings in the last quarter and the
> penalty will be based on that fact.

The Out-of-the-country exception is a two-month extension.

<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Arthur Kamlet on May 25, 2007, 10:50 pm
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> I have an extesion to file until June 15, so I am not in the
> penalty area. However I just noticed that I had an
> unexpected capital gain in December. I realize that I will
> have to pay interest on my underpayment of estimated tax
> since then, but what form can I fill out to prevent the IRS
> from considering it spread out for the whole year?

It's ugly, but Form 2210 Schedule AI is used to annualize
income and deductions vs estimated and withheld taxes.

So if most of your income is last quarter, it will determine
most of your estimates should have been last quarter.

<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

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