Underpayment Penalty Calculation in disaster relief areas

Forum|Forum|2 years ago
February 23, 2024
1 reply
11 views

It does not appear that Lacerte takes into account that estimated tax payments were not due until November 16, 2023. Form 5805 shows a penalty of $2,439 and my hand calculation indicates a penalty of $40. Is there an entry in Lacerte that indicates "tax relief" or do they just go by the zip code. Anyone else having this problem?

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Best answer by abctax55

Enter the payments as if paid on the 'proper' dates.

Lacerte will NOT be reprogramming for this; they didn't do anything at all last year when this came down regarding different filing dates etc.

abctax55Answer

Level 15

Enter the payments as if paid on the 'proper' dates.

Lacerte will NOT be reprogramming for this; they didn't do anything at all last year when this came down regarding different filing dates etc.

HumanKind... Be Both

R

Ron PAuthor

Level 3

Great idea. Exactly what I did - no penalty. Taxpayer would have paid on estimated taxes on time except for my advice to defer the payment for 6 months. $250K invested in short-term treasuries yielding 5.25% (state tax-free) resulted in about $6,500 in interest income. Better use of her cash. Thanks for the advice.

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