UltraTax CS: 1040 penalties

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This article covers late filing, late payment, late payment interest, and underpayment penalties for Federal Form 1040.

Why aren't penalties working the way I expect?

Check your input:

Folder Tab Data entry
Payments Est

If there were estimated payments or a payment made with the extension, enter the amounts.

  • For estimates, enter the total amount paid in the Enter total field, OR
  • If there are calculated amounts, mark the Treat calculated amounts as paid box, OR
  • Enter the Date paid and Amount paid for each quarter.
  • If the return was extended, enter any payment made with the extension in the Paid with 4868 ext field or the Paid with 2350 ext field, depending on if the 4868 or 2350 was filed.
Payments Ext
  • Look for the Calculate extension field. If the return was extended, enter code 1. If the return was not extended, the field should be blank.
  • Look for the Extended due date field. If the return was extended, the extended due date should appear there. If the return was not extended, the field should be blank.
Payments Pen
  • Look for the Date 2017 return filed. Penalties calculate based on that date, so verify the date is correct.
  • Enter the 2016 Tax and 2016 Adjusted gross income to adjust for safe harbor rules.

If your data entry is correct according to the table above, see the notes below for more information about how penalties are calculated.

How do I start calculating penalties?

Penalties calculate automatically based on the date entered in the Payments folder > Pen tab Date 2017 return filed field. To ensure the correct calculations, enter the actual date the return was filed. If that field is blank, UltraTax assumes the return was filed on the original due date. Click here for more information about this input field.

How do I stop penalties from calculating?

To remove penalties, go to the Payments > Pen tab. Under Suppress penalties on Form 1040, mark the box next to the kind of penalty you want to suppress.

Where can I see the amount of penalties?

Late filing interest, failure to file (FTF), and failure to pay (FTP)

These penalties print at the bottom of Form 1040 page 2. For detailed calculations, go to the Form view, click the Late folder and review the Late Filing Penalties and Interest Worksheet in Forms View.

Underpayment of estimated tax

Go to the Form view, click the 2210 folder and review Form 2210. Note that there is an Underpayment Penalty Worksheet tab at the top of this form.

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