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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Late filing, late payment, and underpayment penalties calculate automatically based on information in the 1040 return. For more information about how penalties are calculated, see the IRS guidelines on Understanding Penalties and Interest.

Late filing or Failure to File

This amount calculates when a balance due return is filed after the due date. The amount is based on April 15th, even when that date falls on a weekend or holiday. You can see the amount with code FTF at the bottom of Form 1040, Page 2.

If you think a penalty should not calculate, do the following.

1. In the Payments folder > Ext screen, verify that the Calculate extension field is correct.
2. Open the Pen screen and verify that the Date 2022 return filed field has the correct date. Depending on the code in the Calculate extension field, a date after April 18, 2023 or October 16, 2023 may cause this penalty to calculation.
3. Verify the balance due on Form 1040. If a balance should not be due, review your data entry.

To remove this penalty from the return, enter X in the Suppress penalties on Form 1040: Failure to File (FTF) field on the Pen screen in the Payments folder. If you suppress the penalty, the IRS will send the taxpayer a bill.

Late payment or Failure to Pay

This amount calculates when 90 percent of the tax liability hasn’t been paid by April 18, 2023. The penalty amount calculates based on April 15th, even when that date falls on a weekend or holiday. You can see the amount with code FTF at the bottom of Form 1040, Page 2, and the detailed calculation appears in Forms view > Late folder.

If you think a penalty should not should calculate, do the following.

1. In the Payments folder > Ext screen, verify that the Calculate extension field is correct.
2. Open the Pen screen and verify that the Date 2022 return filed field has the correct date.
3. Open the Est screen and verify the Paid with 4868 ext field is correct.
4. If the fields above are correct or you didn’t file an extension, check any withholding or payment information including the 2022 Federal Payments section of the Est screen.

To remove the penalty from the return, enter X in the Suppress penalties on Form 1040: Failure to Pay (FTP) field on the Pen screen in the Payments folder. If you suppress the penalty, the IRS will send the taxpayer a bill.

Late interest

Interest calculates for late filing and/or late payment penalties, and this amount appears with code INT at the bottom of Form 1040, Page 2. The penalty amount calculates based on April 15th, even when that date falls on a weekend or holiday. You can review the calculation in Forms view > Late folder.

Penalties calculate for two years after the tax year of the return. After two years, you must either calculate penalties manually or file the return without penalties and allow the IRS to send a bill.

To remove the penalty from the return, enter X in the Suppress penalties on Form 1040: Late filing interest (INT) field on the Pen screen in the Payments folder. If you suppress the penalty, the IRS will send the taxpayer a bill.

Amended returns

The IRS calculates penalties for amended returns, so they are not calculated in UltraTax CS.

Underpayment of estimated tax

This amount calculates on Form 2210. If the taxpayer made payments with estimates or the extension and you think the penalty should not calculate, open the Est screen in the Payments folder and verify that the Federal Payments section has data.

For estimate payments, do one of the following.

• Enter the total amount paid in the Enter total field, or
• Mark the Treat calculated amounts as paid box when amounts are in the Calculated amount column, or
• Enter the Date paid and Amount paid for each quarter.

For extension payments, enter any payment made with the extension in the Paid with 4868 ext or Paid with 2350 ext field.

Waiver

The IRS may waive the penalty for various reasons, such as if the taxpayer lives in a federal disaster area. See the Form 2210 instructions for more information.

To request a waiver, open the Pen screen in the Payments folder.

• To request to waive 100 percent of the underpayment penalty, enter X in the Have waiver amount equal to penalty calculated field.
• To enter a specific amount, use the Enter amount field.

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