Page 67 - Individual Forms & Instructions Guide

14:28 - 20-Jan-2023
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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
undue hardship, you can ask for an ex- your adjusted gross income (AGI) Because Form 2210 is compli-
tension of time to pay by filing Form shown on your 2021 return was more TIP cated, you can leave line 38
1127 by the due date of your return (not than $150,000 (more than $75,000 if blank and the IRS will figure
counting extensions)—April 18, 2023, married filing separately for 2022)). the penalty and send you a bill. We
for most people. An extension generally Your estimated tax payments for 2022 won't charge you interest on the penalty
won't be granted for more than 6 must have been made on time and for if you pay by the date specified on the
months. You will be charged interest on the required amount. bill. If your income varied during the
the tax not paid by April 15, 2023. You For most people, the “tax shown on year, the annualized income installment
must pay the tax before the extension method may reduce the amount of your
runs out. Penalties and interest will be your 2021 return” is the amount on your penalty. But you must file Form 2210
2021 Form 1040 or 1040-SR, line 24,
imposed until taxes are paid in full. For because the IRS can't figure your penal-
the most up-to-date information on minus the total of any amounts shown ty under this method.
on lines 27a, 28, 29, and 30; Schedule 3,
Form 1127, go to IRS.gov/Form1127.
lines 9, 12, 13b, 13g, and 13h; and
Line 38 Forms 8828, 4137, 5329 (Parts III Third Party Designee
through IX only), 8885, and 8919. Also
Estimated Tax Penalty subtract from line 24 any: If you want to allow your preparer, a
friend, a family member, or any other
• Tax on an excess parachute pay- person you choose to discuss your 2022
You may owe this penalty if: ment,
• Line 37 is at least $1,000 and it is • Excise tax on insider stock com- tax return with the IRS, check the “Yes”
more than 10% of the tax shown on your pensation of an expatriated corporation, box in the “Third Party Designee” area
return, or • Uncollected social security and of your return. Also enter the designee's
• You didn't pay enough estimated Medicare or RRTA tax on tips or name, phone number, and any five digits
tax by any of the due dates. This is true group-term life insurance, and the designee chooses as their personal
even if you are due a refund. • Look-back interest due under sec- identification number (PIN).
For most people, the “tax shown on tion 167(g) or 460(b). If you check the “Yes” box, you, and
your return” is the amount on your 2022 When figuring the amount on line 24, your spouse if filing a joint return, are
Form 1040 or 1040-SR, line 24, minus include household employment taxes authorizing the IRS to call the designee
the total of any amounts shown on lines only if line 25d is more than zero or you to answer any questions that may arise
27, 28, and 29; Schedule 3, lines 9, 12, would have owed the estimated tax pen- during the processing of your return.
13b, and 13h; and Forms 8828, 4137, alty for 2021 even if you didn't include You are also authorizing the designee to:
5329 (Parts III through IX only), and those taxes. • Give the IRS any information that
8919. Also subtract from line 24 any: If the Exception just described is missing from your return;
• Tax on an excess parachute pay- doesn't apply, see the Instructions for • Call the IRS for information about
ment, Form 2210 for other situations in which the processing of your return or the sta-
• Excise tax on insider stock com- you may be able to lower your penalty tus of your refund or payment(s);
pensation of an expatriated corporation, by filing Form 2210. • Receive copies of notices or tran-
• Uncollected social security and scripts related to your return, upon re-
Medicare or RRTA tax on tips or Figuring the Penalty quest; and
group-term life insurance, and If you choose to figure the penalty your- • Respond to certain IRS notices
• Look-back interest due under sec- self, use Form 2210 (or 2210-F for farm- about math errors, offsets, and return
tion 167(g) or 460(b). preparation.
When figuring the amount on line 24, ers and fishermen). You aren't authorizing the designee
include household employment taxes Enter any penalty on line 38. Add the to receive any refund check, bind you to
only if line 25d is more than zero or you penalty to any tax due and enter the total anything (including any additional tax
would owe the penalty even if you didn't on line 37. liability), or otherwise represent you be-
include those taxes. However, if you have an overpay- fore the IRS. If you want to expand the
Exception. You won't owe the penalty ment on line 34, subtract the penalty designee's authorization, see Pub. 947.
if your 2021 tax return was for a tax from the amount you would otherwise This authorization will automatically
year of 12 full months and either of the enter on line 35a or line 36. Lines 35a, end no later than the due date (not
following applies. 36, and 38 must equal line 34. counting extensions) for filing your
1. You had no tax shown on your If the penalty is more than the over- 2023 tax return. This is April 15, 2024,
2021 return and you were a U.S. citizen payment on line 34, enter -0- on lines for most people.
or resident for all of 2021. 35a and 36. Then, subtract line 34 from
2. The total of lines 25d, 26, and line 38 and enter the result on line 37.
Schedule 3, line 11, on your 2022 return Don’t file Form 2210 with your re- Sign Your Return
is at least 100% of the tax shown on turn unless Form 2210 indicates that you
your 2021 return (110% of that amount must do so. Instead, keep it for your re- Form 1040 or 1040-SR isn't considered
if you aren't a farmer or fisherman, and cords. a valid return unless you sign it in ac-

Need more information or forms? Visit IRS.gov. -60-