How to Calculate the Late Penalty for Filing Taxes

Federal taxes are due by April 15th annually. If you file late you may owe penalties. In most cases you will not be required to calculate your own penalty but when you are you will use Form 2210. It can also be used a worksheet if you choose to calculate your own penalty or to determine if you owe a penalty but in these cases you will not file it.

Difficulty: Easy

Instructions

Things You'll Need:

• Form 1040
• Form 2210

1. Complete your Form 1040 as normal up to Line 75.

2. Fill out Part I of Form 2210 using the necessary information from your 1040. If Line 4 or 7 is less than $1,000 you do not owe a penalty. If Line 6 is equal to or greater than Line 9 you do not owe a penalty, but if box E of Part II applies to you, then you must file page 1 of Form 2210.

3. Write in Part II of Form 2210 if you owe a penalty. If box B, C or D applies to you then you must file Form 2210. Otherwise do not file Form 2210 but you may use it as a worksheet to figure your penalty.

4. Answer Part III if you either made no estimated payments, your only payments were withheld federal income tax, or you made the same estimated payments each quarter. Copy the result from Line 17 to Line 76 of your Form 1040.

5. Complete Part IV if you didn't qualify for Part III. The four columns are for each of the four fiscal quarters. You will figure your underpayment and penalties for each quarter separately and total them at the end of the section following the directions. Copy the resulting penalty on Line 35 to Line 76 of your Form 1040.

6. Finish filling out your Form 1040.

Tips & Warnings

• If the IRS calculates your penalty no additional late penalties are incurred between your filing date and when you pay your bill provided you pay the bill on time.