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20.1.3.2
(06-23-2009)
IRC Section 6654 — Individual Taxpayers & Fiduciaries
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IRC section 6654 provides for a penalty when individuals, estates and trusts (other than charitable trusts) underpay any required
installment(s) of estimated income tax liabilities reportable on Forms 1040 (U.S. Individual Income Tax Return) and Forms
1041 (U.S. Fiduciary Income Tax Return).
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For taxable years beginning January 1, 1998, taxpayers are required to make estimated tax payments if the tax that will be
shown on their return (or, if no return is filed, their tax liability), minus tax amounts withheld from wages during the year,
is $1,000 or more. (Prior to January 1, 1998, the threshold was $500.)
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"Tax shown on the return"
is defined in the instructions for Forms 2210 or Form 2210-F. In masterfile terms, it is the ES tax base amount reflected
in the module. This amount should be equal to tax per taxpayer reduced by any amounts reflected with TC 768 and TC 766 carrying
the same DLN as the return.
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