2020 Ca underpayment penalty not calculating??

Forum|Forum|5 years ago
February 17, 2021
2 replies
16 views

Currently I have a client who is underpaid, significantly, for tax year 2020. The program is not calculating the California underpayment penalty. The form simply says "Exception met". I do not see how there is an exception for their situation. They did have a refund in the prior year. Anyone else having this same issue?

Lacerte Tax

This topic has been closed for replies.

George4Tacks

Level 15

Have you looked at the 5805? It may have the solution right on the form, without even reading the instructions.

Answers are easy. Questions are hard!

Y

YOLOTaxesAuthor

Level 3

Correct, that is my point. The client does not meet ANY of the exception rules. Wanted to know if anyone else had noticed a calculation issue on this page as well.

George4Tacks

Level 15

Just for fun what are:

2019 tax

2019 withholding + estimates

2020 tax

2020 withholding + estimates

If you look at the Forms view, you can actually see all the pages of the 5805, that might give away the answer. I don't doubt Lacerte could screw this up, but it seems unlikely.

Answers are easy. Questions are hard!

D

dbetteloncpa

Level 2

Yes, I'm having the same issue. Did you ever get an answer?

George4Tacks

Level 15

If everyone is asking about the CA 540, form 5805 then possibly you have an entry in Screen 8 for Form 2210 options (Ctrl + T) [O] in the State column.

Go to forms view and select CA, then check the Show all and look at the 5805. Look at page 5 and see what is c computing there. Maybe you can see something there that solves this problem.

Answers are easy. Questions are hard!

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