Common questions about fiduciary Form 2210 underpayment penalty in Lacerte

Lacerte won't generate Form 2210 if an exception to the penalty is met. For estates and trusts, no penalty applies if:

• A decedent's estate for any tax year ending before the date that is 2 years after the decedent's death.
• A trust that was treated as owned by the decedent if the trust will receive the residue of the decedent's estate under the will (or if no will is admitted to probate, the trust primarily responsible for paying debts, taxes, and expenses of administration) for any tax year ending before the date that is 2 years after the decedent's death.

Refer to the Instructions for Form 2210 for more information about exceptions to the penalty.

The estate may owe the penalty for the current tax year if the total of the withholding and timely estimated tax payments didn't equal at least the smaller of:

1. 90% of the 2023 tax, or
2. 100% of the 2022 tax.
   • The estate's 2022 tax return must cover a 12-month period.