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R-210NR-i (1/17)
Underpayment of Individual Income 2016
Tax Penalty Computation 2016 Taxable Year
Nonresident and Part-Year Resident Filers
GENERAL INFORMATION
Underpayment Penalty
Revised Statute 47:118 provides for a 12 percent penalty for underpayment of individual income tax. The penalty may be imposed if
you did not pay enough estimated tax for the year or did not make estimated payments on time or in the required amount. The penalty
is imposed on each underpayment for the number of days it was unpaid.
Filing An Estimate And Paying The Tax For Calendar Year Taxpayers
If you file a return on a calendar year basis and are required to file Form IT-540ES, Estimated Tax Declaration for Individuals, you are
generally required to file estimated tax by April 15, and to pay the tax in four installments. If you are not required to file estimated tax
until later in the year because of a change in income, you may be required to pay in fewer installments. Below is a table that shows the
due date(s) for estimated tax and the maximum number of installments required.
Period in which Due Date Maximum Number of
Requirements are First Met of Payment Installments Required
Between Jan 1 and April 1 April 15, 2016 4
After April 1 and before June 2 June 15, 2016 3
After June 1 and before Sept 2 Sept. 15, 2016 2
After September 1 Jan. 15, 2017 1
Special Rules For Farmers And Fishermen
Revised Statute 47:117(B) provides that if at least two-thirds of an individual’s estimated gross income is from farming, or fishing,
including oyster farming, the declaration and estimated tax payment may be made any time on or before January 15 of the succeeding
taxable year without being assessed underpayment of estimated tax penalty. The declaration payment must be at least 66.66 percent
of the estimated tax to satisfy any underpayment. To be considered a fisherman, one must conduct the business of fishing and operate
as a commercial fisherman.
Items Needed To Complete Form R-210NR for 2016
1. A copy of your 2015 Louisiana individual income tax return.
2. Your 2016 Louisiana individual income tax return.
3. The dates and amounts of your declaration payments made for the 2016 taxable year.
4. The date and amount of your extension payment for 2016, if any.
Penalty Exceptions
You will need to complete Exception 1 on page 3 to determine if you are possibly subject to an underpayment penalty for any period.
Exception 1
The underpayment of estimated tax penalty will not be imposed on any installment if no declaration of estimated tax is required to be filed
because the taxpayer did not reasonably expect for their taxes to exceed $1,000 for single filers and $2,000 for joint filers as required
by Revised Statute 47:116(A).
If you do not meet Exception 1, complete Form R-210NR and attach it to your 2016 Form IT-540B. Exceptions 2 through 5 determine
if the amount that was paid for a period satisfies the required period payment as calculated by the specific exception. You may apply
a different exception to any period. Once you have determined an exception exists, you do not have an underpayment for that period.
Exceptions 2 through 5
The underpayment of estimated tax penalty will not be imposed on any installment if the total amount of all estimated tax payments made
on or before the last date prescribed for the payment of the installment equals or exceeds the lesser of the following:
1. The amount which would have been required to be paid on or before the date if the estimated tax were whichever of the following
is the least.
• The tax due on the preceding tax year’s return, if the individual filed a tax return for the preceding year and the year was a
taxable year of 12 months (See Exception 2);
• The tax that would have been due for the preceding taxable year based on the current tax year’s rates, the taxpayer’s filing
status and number of dependents. (See Exception 3); or
• Ninety percent (66.66 percent for qualified farmers and fisherman) of the tax due on an annualized basis for each quarterly
period (See Exception 4).
2. Ninety percent of the tax computed at the applicable rates on the basis of the actual taxable income for the months in the taxable
year ending before the month in which the installment is required to be paid (See Exception 5).
Applying Credits And Withholding
When applying credits and withholding to a period, you may equally distribute the amounts to each period based upon the number of
months in the period. You may use the actual date when those amounts were withheld or the date on which the credit was earned.
Any extension payment or composite partnership return payments made on or before January 15, 2017, must be applied to the fourth
installment period. Any credit carry forward from the 2015 tax year to the 2016 tax year must be included in the first installment period.
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