corporate tax return 1120 underpayment penalty

Forum|Forum|1 year ago
February 13, 2025
2 replies
14 views

The 1120 return won't calculate the 2220 underpayment form and gives two options to a critical diagnostic. option 1 suppress the penalty form and let IRS send your client a nasty letter, option 2 calculate the penalty yourself, and paper file the return. These are both very poor options these penalty rates are readily available, cheap and even free tax programs and websites can calculate them and when i asked live chat they said 'that's how it is'.

ok agreed but that's not how it should be unless someone can explain why a little more convincingly.

Federal Forms

B

billswig

Level 2

The underpayment penalty can be substantial. The Form 2220 is essential to file a complete and

accurate income tax return. The Form 2220 is calculating for Form 1120 but not for Form 990PF. The

missing information is only the interest rates are not filling in on the form.

Intuit should be capable of programing the Form 2220 to calculate the penalty properly. A pdf

attachment to compute the penalty will not work because the IRS will not keypunch the Form 2220 in

the system to compute the penalty. Filing the return and overriding the penalty will generate a notice

which will take months to resolve and unprofessional for the tax preparer. Intuit should make an effort

to fix the problem.

George4Tacks

Level 15

As @billswig stated, the program does do the 2220 for the 1120. Key to the computation for @TaxCurious is to enter the Filing Date as the 1st entry in the input area. Use the Form 2220 options of 1=When penalty exists.

Answers are easy. Questions are hard!

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