How to Report Late Penalties on Form 1040
Most income tax forms and payments must be sent to the federal government by April 15 of each year. Penalties are incurred for late payments; specific Internal Revenue Service procedures exist for declaring penalties before the fact if you know they will occur. The IRS often calculates penalties for taxpayers; in some cases the filer can do so ahead of time. The process involves IRS Form 1040 and Form 2210. Have your paperwork looked over by a certified tax preparer to avoid any mistakes.
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Things You'll Need
- IRS Form 1040
- IRS Form 1040 Instructions
- IRS Form 2210
- IRS Form 2210 Instructions
- Calculator
- Pen
Instructions
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Obtain a paper copy of the appropriate Form 1040 at the post office or download it from the IRS website. Fill out the 1040 line by line, including all your income information and declarations. Stop at line 75 on the form.
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Fill out Form 2210. Follow the process through line seven. Calculate the difference between line four and line seven. Stop going further if line four or line seven are less than $1,000. Go back to Form 1040. Keep the completed Form 2210 for your records; it reflects your conclusion that no penalty was owed. Continue the form if line four or seven exceed $1,000.
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Continue to follow the Form 2210 instructions to calculate the amount of penalty owed to the IRS. Make sure to have a completed copy of the filled out Form 2210 worksheet ready to attach to your Form 1040 if you conclude a penalty is due.
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Finish Part three and four of Form 2210. Take the math result on line 17 of your Form 2210 and copy it to line 76 on your Form 1040. Complete Form 1040. Sign both forms. Your spouse should also sign if you are filing jointly as a married couple.
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Write a personal check or money order for the final amount of aggregate taxes (including your penalties) owed to the IRS. Make a copy of all the documentation and all forms. Staple the forms, check, and worksheets together with your W-2 forms if they apply.
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Mail your documents to the address of the IRS provided on the bottom of the Form 1040 or in the 1040 Guidebook. Purchase a certified mail receipt at the post office when mailing your documents to save as proof of mailing.
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Tips & Warnings
No late penalties are incurred if you wait for the IRS calculation.
Do not refuse to file your taxes just because you may owe a penalty. Failure to file or intentional tax evasion could result in more serious penalties or criminal action.
References
Resources
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
