2015 Form IL-2210 Instructions - Illinois Department of Revenue

Illinois Department of Revenue
2015 Form IL-2210 Instructions General Information
What is the purpose of this form?
This form allows you to figure penalties you may owe if you did not
make timely estimated payments,
pay the tax you owe by the original due date, or
file a processable return by the extended due date.
The late-payment penalty for underpayment of estimated tax
is based on the tax shown due on your original return. Do not use the
tax shown on an amended return filed after the extended due date of
the return to compute your required installments in Step 2.
Do I need to complete this form if I owe
penalties?
No, you do not need to complete this form if you owe penalties. We
encourage you to let us figure your penalties and send you a bill
instead of completing and filing this form yourself.
If you let us figure your penalties, complete your Form IL-1040 as
usual, leave Line 33 on your Form IL-1040 blank, and do not attach
Form IL-2210.
However, you must complete this form if you
use the annualized income installment method in Step 6; or
choose to enter the actual amount of tax withheld in each quarter
in Step 2, Line 10b.
For more information, see Publication 103, Penalties and Interest for
Illinois Taxes. To receive a copy of this publication, visit our website at
tax.illinois.gov.
What is late-payment penalty?
Late-payment penalty is a penalty assessed for failure to pay the
tax you owe by the due date. This penalty could result from two
different underpayment situations and is assessed at either 2 percent
or 10 percent of the unpaid liability based on the number of days
the payment is late. The penalty rates used on this form are for
returns due on or after January 1, 2005. For returns due before
January 1, 2005, see Publication 103.
You will be assessed a late-payment penalty for unpaid tax if
you did not pay the total tax you owe by the original due date of the
return. An extension of time to file does not extend the amount
of time you have to make your payment.
You will be assessed a late-payment penalty for underpayment of
estimated tax if you were required to make estimated tax payments
and failed to do so, or failed to pay the required amount by the
payment due date.
You do not owe a late-payment penalty for underpayment of
estimated tax if
you qualify as a farmer for this year (check the box on Form IL-1040, Line 33a);
you or your spouse were 65 years of age or older, and
permanently lived in a nursing home during this year (check the
box on Form IL-1040, Line 33b);
you were not required to file Form IL-1040 for last year (check the
box on Form IL-1040, Line 33d);
last year’s Form IL-1040 had a zero tax liability (Form IL-1040,
Line 15 minus Lines 16, 17, 18, and 29); or
this year’s tax liability (Form IL-1040, Line 15 minus Lines 16, 17,
18, 26, 28, and 29) is $500 or less.
What is late-filing or nonfiling penalty?
Late-filing or nonfiling penalty is a penalty assessed for failure to
file a processable return by the extended due date. This penalty is the
lesser of $250 or 2 percent of the tax amount required to be shown
due on your return, reduced by withholding and payments made by
IL-2210 Instructions (R-12/15)
the original due date and any credits allowed on your return (2015
Form IL-1040, Lines 16, 17, 18, and 29.)
An additional penalty will be assessed if you do not file a processable
return within 30 days of the date we notify you that we are not able
to process your return. This additional penalty is equal to the greater
of $250 or 2 percent of the tax shown on your return, determined
without regard to any payments and credits, and may be assessed
up to a maximum of $5,000.
What if I underpaid my estimated tax
because of a change in the law during the
tax year?
If a change in the Illinois Income Tax Act (IITA) enacted during the tax
year increased your liability and the new statute does not specifically
provide for relief from penalties, you may reduce or eliminate your
penalty for underpayment of estimated tax by using the annualized
income installment method in Step 6 and computing your income and
liability for each period according to the IITA as in effect as of the end
of that period. See Specific Instructions for Step 6.
Specific Instructions
Step 1: Provide the following information
Follow the instructions on the form.
Step 2: Figure your required installments
Line 1 – Enter in Column A the total amount of income tax and
compassionate use of medical cannabis surcharge shown on your
2015 Form IL-1040, Lines 15 and 24. Enter in Column B the income
tax shown on your 2014 Form IL‑1040, Lines 15 and 24.
For Columns A and B, if a corrected return was filed for
either year on or before the automatic six-month extension date,
the corrected tax should be used. If an amended return was filed
for either year after the automatic six-month extension date, use the
most current tax reported prior to the extension date.
Line 2 – Enter in Column A the total amount of credits you claimed
on your Form IL-1040, Lines 16, 17, 18, and 29, for this year.
Enter in Column B the total amount of credits you claimed on your
Form IL-1040, Lines 16, 17, 18, and 29, for last year. Do not include
your tax withheld or estimated payments on these lines.
If you are filing a joint return this year and you and your
spouse did not file a joint return last year, enter in Column B the total
of the taxes shown on both of your Form IL-1040 returns for last year.
If you filed a joint return last year and you are either filing separate
returns this year or filing a joint return with a different spouse, skip Lines 1
and 2 of Column B. Enter in Column B, Line 3, the following calculation:
Tax minus credits shown
on last year’s joint return
X
Tax minus credits you would have shown
on a separate return for last year.
Total of the taxes minus credits you
and your spouse would have shown on
separate returns for last year.
Lines 3 through 6 and Line 8 – Follow the instructions on the form.
Line 7 – If Line 5 is $500 or less or if you checked the box on your
Form IL-1040, Line 33a, 33b, or 33d indicating you are not required
to make estimated tax payments, enter zero and skip to Step 3.
Otherwise, follow the instructions on the form.
We will waive the late-payment penalty for underpayment of
estimated tax if you timely paid the lesser of 100 percent of the prior
year’s tax liability or 90 percent of the current year’s tax liability. This
form reflects that waiver.
Line 9a - For each quarter, enter the date that corresponds with the
15th day of the 4th, 6th, and 9th month of your tax year and the 15th
day of the first month following the end of your tax year. If this date
falls on a weekend or holiday, use the next business day.
Page 1 of 4
Line 9b – Enter the amount of your required installment for each due
date shown. For most taxpayers, this is the amount shown on Line 8.
However, if you annualize your income, you must complete Step 6 to
determine the amount of your required installment for each due date. For
taxpayers who annualize, this is the amount shown on Step 6, Line 56.
Annualized income installment method: If your income
was not received evenly throughout the year, you may be able to
lower or eliminate the amount of your required installments by using
the annualized income installment method in Step 6. If you choose
to annualize your income in Step 6, you must use this method for all
four installments.
Line 10a – Quarters 1 through 4: Enter one-fourth of the total tax
withheld (or the actual tax withheld from your wages for each quarter).
We consider you to have paid Illinois tax withheld evenly over
the entire year unless you send us copies of pay stubs or a letter from
your employer that states the amounts actually withheld during each
quarter. To figure even payments of tax withheld, divide the total amount
withheld by four. If you file a joint return, include the tax withheld for both
you and your spouse.
Line 10b – Quarters 1 through 4: Enter the amount of pass-through
withholding payments made on your behalf and shown on Schedule
K-1-P, Partner’s or Shareholder’s Share of Income, Deductions,
Credits, and Recapture, or Schedule K-1-T, Beneficiary’s Share of
Income and Deductions. Enter the entire amount in the quarter in
which the pass-through entity’s tax year ended.
Lines 10c and 11 – Follow the instructions on the form.
Lines 12 and 13 – Complete Lines 12 and 13 of each quarter before
proceeding to the next quarter. Follow the instructions on the form.
Step 3: Figure your unpaid tax
Lines 14 through 17 – Follow the instructions on the form.
Line 18 – Calculate the total of all payments made on or before the
original due date of your 2015 return. Include
any overpayment carried forward to 2015 from a prior year original
or amended return if that prior year return was filed on or before
the original due date of your 2015 Form IL-1040 (April 18, 2016,
for calendar year filers),
your Form IL-1040-ES and Form IL-505-I payments made this year,
the pass-through withholding payments made on your behalf, and
your withholding as shown on your W-2 and 1099 forms.
Compare that total to the total of Line 9b, Quarters 1 through 4, and
enter the greater amount here.
Line 19 – Subtract Line 18 from Line 17. If the amount is
positive, enter the amount here. You owe a late-payment penalty
for unpaid tax. Enter this amount in Penalty Worksheet 2, Line 23,
Column C and continue to Step 4.
zero or negative, Enter the amount here. If the result is negative use
brackets. Continue to Step 4 and complete Penalty Worksheet 1.
Step 4: Figure your late-payment penalty
Use Penalty Worksheet 1 to figure your late-payment penalty for
underpayment of estimated tax. Use Penalty Worksheet 2 to figure
your late-payment penalty for unpaid tax.
You must follow the instructions to properly complete the
penalty worksheets.
Line 20 – Enter your payments, regardless of the type of payment,
and the date you made the payment. List the payments in date order.
Include any overpayment carried forward from a prior year original
or amended return. If your prior year return that made the election to
credit your overpayment against your 2015 tax was filed
on or before the extended due date of that prior year return, your
credit is considered to be paid on April 15, 2015.
However, if all or a portion of your overpayment results from
payments made after the original due date of your 2015 return,
that portion of your credit is considered to be paid on the date
you made the payment.
Page 2 of 4
after the extended due date of that prior year return, your credit
is considered to be paid on the date you filed the return on which
you made the election.
Do not include tax credits, pass-through withholding payments made
on your behalf, or withholding.
Penalty Worksheet 1 - Late-payment penalty for underpayment of estimated tax
If the amount on Line 13 is positive (greater than zero) for any quarter,
you may owe a late-payment penalty for underpayment of estimated
tax. Use this worksheet to figure the penalty for any unpaid quarter.
If you paid the required amount from Line 13 by the due
date in Step 2, Line 9a for each quarter, do not complete Penalty
Worksheet 1.
Line 21 – Follow the instructions below for each column.
Column B - Enter in Quarters 1 through 4, the installment due date
for each quarter from Step 2, Line 9a.
Column C - Enter the amounts from Step 2, Line 13, on the first line
of Column C for each quarter.
Column D – Apply the payment with the earliest date from Line 20 to
the first unpaid quarter. Complete Columns E through I.
Continue applying payments in date order until all unpaid amounts
in Column C have been satisfied (Column E is zero or has an
overpayment for all unpaid quarters), or you have no more payments
to apply. See the example on Page 4.
Penalty Worksheet 1 allows for up to four payments to be
applied to any quarter. If you have more than four payments to apply
to any quarter, use a separate piece of paper following the same
format as Penalty Worksheet 1 and attach to your Form IL-2210.
Column E – Subtract the payment in Column D from the unpaid
amount in Column C.
If the result is positive, complete Columns F through I. Enter this
positive (unpaid) amount on the next line in Column C. Continue
applying payments in date order until Column E is an overpayment,
zero, or you have entered “0” in Column D.
If the result is negative or zero, you have paid this quarter. Enter
the amount here and, if negative, use brackets. Complete Columns F
through I. Apply any negative (overpayment) amount in Column E to
the next underpaid quarter.
If this amount is negative in the fourth quarter, and the
payment date in Column F is after the original due date of the
return, apply this overpayment to any unpaid tax shown on Penalty
Worksheet 2, Line 23 when figuring your late-payment penalty for
unpaid tax. See the instructions for Penalty Worksheet 2, Column D.
If you entered “0” in Column D, enter the amount from Column C
here, and complete Columns F through I.
Column F – Enter the date the payment in Column D was made. If
Column D is “0,” do not enter a date and skip to Column H.
Column G – Figure the number of days from the date in Column B to
the date in Column F and enter that number here. This is the number
of days the payment was late.
Column H – Enter the penalty rate that applies to the number of days
you entered in Column G. See the penalty rates on Form IL-2210,
Page 2. If Column D is “0,” enter 10 percent (.10) here.
Column I – Figure this amount using the payment portion in either
Column C or Column D.
If Column D is “0” or if Column E is “0” or an overpayment, multiply
the unpaid amount in Column C by the penalty rate in Column H.
Otherwise, multiply the payment amount in Column D by the penalty
rate in Column H. Enter the amount here.
Line 22 – Add Column I, Quarters 1 through 4. This is your
late-payment penalty for underpayment of estimated tax. Enter the
amount here and on your Form IL-1040, Line 33.
IL-2210 Instructions (R-12/15)
Penalty Worksheet 2
Late-payment penalty for unpaid tax
Line 23– Follow the instructions below for each column.
Column B – Enter the original due date of your return.
Column C – Enter any positive amount from Line 19 on the first line of
Column C.
Column D – If you completed Penalty Worksheet 1 and you have a
negative amount (overpayment) in the 4th quarter of Column E, and
the payment date in Column F is after the original due date of your
return, apply the overpayment from Line 21, Column E, as the first
payment for Line 23, Column D, and complete Columns E through I.
Continue applying unused payments from Step 4, Line 20, in date
order until the unpaid amount in Column C has been satisfied
(Column E is zero or an overpayment), or you have no more
payments to apply. See the example on Page 4.
If you have no more payments to apply and Column C remains
unpaid, enter “0” in Column D, and complete Columns E through I.
Column E – Subtract the payment in Column D from the unpaid
amount in Column C.
If the result is positive, complete Columns F through I. Enter this
positive (unpaid) amount on the next line in Column C, and continue
completing Columns D through I. Continue doing this until Column E
is an overpayment, zero, or you have entered “0” in Column D.
If the result is negative or zero, you have paid your tax. Enter the amount
here and, if negative, use brackets. Complete Columns F through I.
If you have entered “0” in Column D, enter the amount from Column C
here, and complete Columns F through I.
Column F – Enter the date the payment in Column D was made. If
you are applying an overpayment from Penalty Worksheet 1,
Column E, enter the date that corresponds to that payment, shown
on Line 20.
Column D is “0,” do not enter a date and skip to Column H.
Column G – Figure the number of days from the date in Column B to
the date in Column F and enter that number here. This is the number
of days the payment was late.
Column H – Enter the penalty rate that applies to the number of days
you entered in Column G. See the penalty rates on Form IL-2210,
Page 2. If Column D is “0” and you did not enter a date in Column F,
enter 10 percent (.10) here.
Column I – Figure this amount using the payment portion in either
Column C or Column D.
If Column D is “0” or if Column E is “0” or an overpayment, multiply
the unpaid amount in Column C by the penalty rate in Column H.
Otherwise, multiply the payment amount in Column D by the penalty
rate in Column H. Enter the amount here.
Line 24 – Add Column I. This is your late-payment penalty for unpaid
tax. Enter this amount here and on Step 5, Line 34.
Step 5: Figure your late-filing penalty and
the amount you owe
Figure your late-filing penalty
Complete Lines 25 through 33 to figure your late-filing penalty only if
you are filing your Form IL-1040 after the extended due date of
your return; and
your tax was not paid by the original due date of your return.
Unless both of these apply, you do not owe a late-filing penalty.
Lines 25 through 33 – Follow the instructions on the form.
Figure the amount you owe
Step 6: Complete the annualization
worksheet for Step 2, Line 9b
Unless you made timely estimated payments, annualizing your
income will usually not reduce your penalty. If you complete the
annualization worksheet, check the box on your Form IL-1040,
Line 33c, and attach Form IL-2210 to your return.
Complete Lines 38 through 56 of one column before going to the
next, beginning with Column A.
If the IITA was amended during your tax year and changed how
you compute your net income or credits, and the amendment does
not provide relief for taxpayers who computed their estimated tax
obligations following the old law, use the old law to compute your
net income and credits for each period ending before the date the
amendment became law.
For example, if a law passed on May 30, 2015, that disallowed
certain deductions allowed under prior law, for tax years ending on
or after July 31, 2015, and you are completing this form for calendar
year 2015, you should compute the amounts in Columns A and B,
Line 38 by treating the deduction as though no law changes were
made. The amount in Columns C and D, Line 38 must be computed
by adding back the deduction in accordance with the new law.
To figure the amount on Line 49 for a period before a new act
became law, use the tax rates and credits under the old law.
For example, if a credit was repealed by law, effective June 30, 2014,
for tax years ending on or after December 31, 2014, and the credit
was reinstated July 30, 2015, for tax years ending on or after
December 31, 2015, you could have used the credit to reduce the tax
liability on your 2014 Form IL-2210, in Columns A and B, but not for
Columns C and D.
The credit could be used again on the 2015 Form IL-2210, in
Columns C and D, Line 49, but not Columns A and B. The credit may
not be used for the first five months of the year, because the law
restoring the credit was not in effect as of May 31, 2015.
Line 38 – In Columns A through C, enter the base income that you
would have entered on Form IL-1040, Line 9, if you completed a
Form IL-1040 for the first three months, the first five months, and the
first eight months of the tax year. In Column D, enter the amount from
your Form IL-1040, Line 9.
Income you received through a partnership, S corporation, trust, or
estate is considered received on the last day of that entity’s tax year.
Nonresidents and part-year residents – Enter the amount in
each column that you would have entered on Schedule NR, Step 5,
Line 46, if you completed a Schedule NR at the end of each period.
Lines 39 and 40 – Follow the instructions on the form.
Line 41 – Enter the amount in each column that you would have
entered as your exemption allowance on Form IL-1040, Line 10, as if
you had completed a Form IL-1040 at the end of each period.
If your number of exemptions changed during the tax year, determine
the exemption allowance that you were entitled to claim at the end of
each period. Enter this amount in the appropriate column.
Nonresidents and part-year residents – Prorate your exemptions
as follows:
Illinois annualized income Exemption allowance (Form IL-1040, Line 10)
x
Total annualized income
Lines 42 and 43 – Follow the instructions on the form.
Line 44 – Enter the amount of compassionate use of medical
cannabis surcharge you would have entered on Form IL-1040,
Line 24, if you completed a Form IL-1040 for the first three months,
the first five months, and the first eight months of the tax year. In
Column D, enter the amount from your Form IL-1040, Line 24.
Lines 45 through 56 – Follow the instructions on the form.
Lines 34 through 36 – Follow the instructions on the form.
Line 37 – Add Lines 34 through 36. Enter the total on this line. If the
result is positive, this is the total of your tax, late-payment penalty for
unpaid tax, and your late-filing penalty. See Form IL-1040, Line 40,
instructions for your payment options.
IL-2210 Instructions (R-12/15)
Page 3 of 4
Example
Penalty Peterson’s total income tax and compassionate use of
medical cannabis surcharge is $1,875 as shown on his 2015 Form
IL-1040, Lines 15 and 24. His tax due for 2014 was $2,600. The total
amount of his credits (Form IL-1040, Lines 16, 17, 18, and 29) for
2015 is $75. The total amount of his credits (Lines 16, 17, 18, and
29) for 2014 was $250. No Illinois Income Tax was withheld from his
pay nor did he have a credit from a prior year. He figured his penalty
using the following estimated payments:
$100 on April 7, 2015
$750 on September 8, 2015
$200 on June 9, 2015
$250 on January 19, 2016
Mr. Peterson filed his return August 9, 2016, and paid $400.
Calculations
Step 3: Figure your unpaid tax
14
15
16
17
18
1,800
14
0
15
0
16
1,800
17
Enter the amount from Column A, Line 3.
Enter the amount of household employment tax from Form IL-1040, Line 22.
Enter the amount of use tax from Form IL-1040, Line 23.
Add Lines 14 through 16. Enter the total amount here.
Calculate the total amount of all payments made on or before the original due date of your tax return. Include your credit(s)
carried forward from a prior year (see instructions), your total estimated payments made this year, Form IL-505-I payments,
the pass-through withholding payments made on your behalf, and your withholding as shown on your W-2 and 1099
1,620
forms. Compare that total to the total of Line 9b, Quarters 1 through 4, and enter the greater amount here.
18
19 Subtract Line 18 from Line 17. If the amount is
positive, enter that amount here. Enter this amount in Penalty Worksheet 2, Line 23, Column C and continue
to Step 4.
180
zero or negative, enter that amount here and, if negative, use brackets.
19
Step 4: Figure your late-payment penalty
Use Penalty Worksheet 1 to figure your late-payment penalty for underpayment of estimated tax.
Use Penalty Worksheet 2 to figure your late-payment penalty for unpaid tax.
You must follow the instructions in order to properly complete the penalty worksheets.
20 Enter the amount and the date of each payment you made. Include any credit(s) carried forward from a prior year. See instructions.
Amount
100.00
200.00
750.00
a
b
c
d
250.00
Date paid
0 __/__
4 0 __/__
7 2 __
0 __
1 __
5
__
0 __/__
6 0 __/__
9 2 __
0 __
1 __
5
__
0 __/__
9 0 __/__
8 2 __
0 __
1 __
5
__
0 __/__
1 1 __/__
9 2 __
0 __
1 __
6
__
e
f
g
h
Amount
400.00
Number of days late
Penalty rates
Date paid
Amount
Date paid
8 0 __/__
9 2 __
0 __
1 6__
__0 __/__
i
__ __/__ __/__ __ __ __ j
__ __/__ __/__ __ __ __ k
__ __/__ __/__ __ __ __ l
__ __/__ __/__ __ __ __
__ __/__ __/__ __ __ __
__ __/__ __/__ __ __ __
__ __/__ __/__ __ __ __
Penalty rate
1 - 30........................... .02
31 or more ..................... .10
Penalty Worksheet 1 – Late-payment penalty for underpayment of estimated tax
If you paid the required amount from Line 13 by the payment due date for each quarter, do not complete this worksheet.
21 Enter the unpaid amounts from Line 13, Quarters 1 through 4, on the first line of the appropriate quarters in Column C below. If you have
more than four payments to apply to any quarter, use a separate piece of paper following the same format as below and attach to this form.
A
B
C
D
E
F
G
H
I
Period
Due
date
Unpaid
amount
Payment
applied
Balance due
(Col. C - Col. D)
Payment
date
Number of
days late
Penalty rate
(See above)
Penalty
0
55
146
0
.10
.10
0.00
20.00
10.50
200 x .10 = 20.00
105 x .10 = 10.50
85
.10
40.50
405 x .10 = 40.50
0
126
0
.10
0.00
16.50
165 x .10 = 16.50
4
207
.02
.10
1.70
32.00
85 x .02 = 1.70
320 x .10 = 32.00
15
0 __
1 __
5
__ 4
__/__
__/__2__
Qtr 1 0
405
305
105
100
200
750
305
105
[645]
405
645
[240]
0 __/__
4 0 __/__
7 2 __
0 1
__
__ 5
__
0 __/__
6 0 __/__
9 2 __
0 1
__
__ 5
__
0 __/__
9 0 __/__
8 2 __
0 1
__
__ 5
__
__ __/__ __/__ __ __ __
15
0 __
1 __
5
__ 6
__/__
__/__2__
Qtr 2 0
0 __/__
9 0 __/__
8 2 __
0 1
__
__ 5
__
__ __/__ __/__ __ __ __
__ __/__ __/__ __ __ __
__ __/__ __/__ __ __ __
15
0 __
1 __
5
__ 9
__/__
__/__2__
Qtr 3 0
405
165
240
250
165
[85]
0 __/__
9 0 __/__
8 2 __
0 1
__
__ 5
__
0 __/__
1 1 __/__
9 2 __
0 1
__
__ 6
__
__ __/__ __/__ __ __ __
__ __/__ __/__ __ __ __
15
2 __
0 1__6
__ 1
__/__
__/__
__
Qtr 4 0
405
320
85
400
320
[80]
0 __/__
1 1 9__/__
2 __
0 1
__
__ 6
__
0 __/__
8 0 9__/__
2 __
0 1
__
__ 6
__
__ __/__ __/__ __ __ __
__ __/__ __/__ __ __ __
22 Add Column I, Quarters 1 through 4. This is your late-payment penalty for underpayment of estimated tax.
121.20
Enter
the total amount here and on your Form IL-1040, Line 33 (round to whole dollars).
22
You may apply any remaining overpayment from Quarter 4, Column E above to any underpayment when figuring Penalty
Worksheet 2, only if the payment date in Column F is after the original due date of the return.
Penalty Worksheet 2 – Late-payment penalty for unpaid tax
23 Enter any positive amount from Line 19 on the first line of Column C below.
A
Return
B
C
D
E
F
G
H
I
Due
date
Unpaid
amount
Payment
applied
Balance due
(Col. C - Col. D)
Payment
date
Number of
days late
Penalty rate
(See Page 2)
Penalty
0__4__/__
1 __/__
8 2__0__1 __
6
180
100
80
0
100
0 8__/__
0 __/__
9 2 __
0 1__ 6
113
__
__
100
__ __/__ __/__ __ __ __
.10
.10
8.00
10.00
80 x .10 = 8.00
100 x .10 = 10.00
__ __/__ __/__ __ __ __
__ __/__ __/__ __ __ __
24 Add Column I. This is your late-payment penalty for unpaid tax.
Enter
the total amount here and on Step 5, Line 34.
24
Page 4 of 4
18.00
IL-2210 Instructions (R-12/15)