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Mar 5, 2018 ... Correction to the 2015 and 2016 Instructions for Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts -- 18-SEPT- ...
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What is underpayment of estimated tax?
Underpayment of estimated tax occurs when a taxpayer does not pay enough tax throughout the year either through withholding or estimated tax payments.
Who is required to file underpayment of estimated tax?
Individuals, sole proprietors, partners in partnerships, and shareholders in S corporations are required to file underpayment of estimated tax if they expect to owe a certain amount of tax at the end of the year.
How to fill out underpayment of estimated tax?
Underpayment of estimated tax can be filled out using Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. This form calculates the amount of underpayment and any associated penalties.
What is the purpose of underpayment of estimated tax?
The purpose of underpayment of estimated tax is to ensure that taxpayers pay a sufficient amount of tax throughout the year to avoid penalties for late payment.
What information must be reported on underpayment of estimated tax?
The amount of underpayment, the applicable penalty rate, and any exemptions or special circumstances that may affect the calculation must be reported on underpayment of estimated tax.
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