Virginia 760C Underpayment Penalty Calculation Errors
The Virginia 760C underpayment penalty is calculating the incorrect amounts for 2023. We have clients with small underpayments and Lacerte is generating large underpayment penalties. Just a heads up to review these for Virginia state returns. I have tried to bring this to the attention of support but they closed the case and stated that form was functioning as designed. We have used the software for ten years and this year has been the worst in terms of software issues and support refusing to resolve obvious calculation errors. I don't have the time to submit a detailed line by line explanation as they requested. Apparently, we have to pay thousands for the professional software and also provide the tax calculations inputs during tax season. A taxpayer that underpays estimated tax by only $129 each quarter should not get a $250 estimated tax penalty. Just run it through 2022 and you will see the software error. The penalty should be $30 maybe at the most.
