Form IL-2210 Instructions

              IL-2210 Instructions (R-12/05) Page 1 of 4
Illinois Department of Revenue
Form IL-2210 Instructions 2005
General Information
What is the purpose of this form?
The purpose of this form is to figure any 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.
Form IL-2210, Computation of Penalties for Individuals, may
only be used with original returns. This includes any corrected return
filed before the extended due date of the return.
Do I need to complete this form if I owe
penalties?
No, you do not need to complete this form if you owe penalties. You
may choose to have us figure your penalties and send you a bill
instead of completing and filing this form yourself.
If you choose to have us figure your penalties, complete your Form
IL-1040 as usual, leave Line 27 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 write the actual amount of tax withheld in each quarter
in Step 2, Line 14.
For more information, see Publication 103, Penalties and Interest for
Illinois Taxes. To receive a copy of this publication, visit our web site
at tax.illinois.gov, call our 24-hour Forms Order Line at
1 800 356-6302, or call our TDD (telecommunications device for the
deaf) at 1 800 544-5304.
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 increased rates,
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. The penalty will be assessed if your Illinois
Income Tax exceeded the total amount of tax withheld and credits
(Form IL-1040, Line 16 minus the total of Lines 17, 19, 20b, 21b,
22b, and 23) for the tax year by more than $500.
You do not owe a late-payment penalty for underpayment of
estimated tax if
you qualify as a farmer for 2005;
you were not required to file Form IL-1040 for 2004;
your 2004 Form IL-1040 was for a tax year of 12 months, but had
zero tax liability (Form IL-1040, Line 16 minus Lines 19, 20b, 21b,
22b, and 23);
your 2005 tax liability (Form IL-1040, Line 16 minus Lines 17, 19,
20b, 21b, 22b, and 23) is $500 or less; or
you were 65 years of age or older, and you permanently lived in a
nursing home during tax year 2005.
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 the original due date and any credits allowed on your return
(Form IL-1040, Lines 19, 20b, 21b, 22b, and 23.)
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
All instructions are written for calendar-year taxpayers.
Step 1: Complete the following information
Lines 1 through 4 – Follow the instructions on the form.
Step 2: Figure your required installments
Line 5 – Write in Column A the tax shown on your 2005 Form
IL-1040, Line 16. Write in Column B the tax shown on your 2004
Form IL-1040, Line 16.
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 6 – Write in Column A the total amount of credits you claimed
on your 2005 Form IL-1040, Lines 19, 20b, 21b, 22b, and 23. Write in
Column B the total amount of credits you claimed on your 2004 Form
IL-1040, Lines 19, 20b, 21b, 22b, and 23. 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, write in Column B the total
of the taxes shown on both of your returns for 2004.
If you filed a joint return for 2004 and you are either filing a separate
return this year or filing a joint return with a different spouse, skip Lines 5
and 6 of Column B. Write in Column B, Line 7, the following calculation:
Lines 7 through 12 – Follow the instructions on the form.
Line 13 – Write the amount of your required installment for each due
date shown. For most taxpayers, this is the amount shown on Line 12.
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 52.
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.
Tax minus credits shown
on your 2004 joint return X
Tax minus credits you would have
shown on a separate return for 2004.
Total of the taxes minus credits you and
your spouse would have shown on
separate returns for 2004.