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Form 2210 questions

Hello, I have two questions re Form 2210. For 2007, I find I've underpaid estimated taxes and thus subject to a penalty. However, I retired in the previous tax year (2006) at age 63 and understand I can request a waiver for that reason. Questions: 1) How extensive should the explanation statement be? and 2) what does the IRS consider the "paid" date to be -- the date the payment is postmarked or the date actually received by the IRS? Thanks very much for your help.

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davidegriffin
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The paid date for a late payment is the date the IRS recieved it, not the mailing date as it is for on time payments.

I suppose any excuse, even senality or ignorance of the law, will work if they believe you.

I don't know our circumstances, but often using the form 2210 Annualized Income Method to compute your penalty can substantially reduce the penalty because of mutual fund distributions being in December , paying home taxes in January or February distorting your Schedule A Itemized Deductions, and capital loss carrovers. In the future plan these items and compute the AI installments . Defer any IRA /pension withdrawals to after September 1 and withhold from them what you would have paid in installments. The end result is to lower your initial installments and avoid any inadvertant underpayments and penalties.

ed

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ed

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