Viewing and updating federal interest rates

Alerts and notices

Planner CS is preloaded with all quarterly federal interest rates that have been announced by the IRS at the time of its release. These interest rates are used for the underpayment penalty calculation (Form 2210).

Viewing interest rates used to calculate the federal underpayment penalty

Note: Conditions must exist such that the taxpayer is subject to the underpayment penalty to view these rates in the plan.

  1. In the federal module, click the Payments button and the Underpayment tab.
  2. Mark the checkbox in the Compute Penalty? field for each year that the penalty should be calculated.
  3. Scroll down to the Underpayment Interest Rates section of the window. Quarterly interest rates are displayed in the April 15 - June 30, July 1 - Sept 30, Oct 1 - Dec 31, and Jan 1 - April 15 fields.

Updating future interest rates as they are made available by the IRS

  1. With a plan open, choose Tools > Federal Interest Rates.
  2. In the Federal Interest Rates dialog, enter the new rates in the appropriate quarterly fields.
  3. Click OK. The new rates will be inserted into the plan.

    Note: In periods for which the quarterly interest rate has not yet been announced, if you have not entered a rate in the Federal Interest Rates dialog, the quarterly interest rate fields will default to the last known interest rate.

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