2024 Underpayment Penalty Refunds

6 replies
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I've had 2 clients whose underpayment penalties were partially refunded. This has never happened before. Does anyone know if there is/was a glitch in the software's calculation?

ProSeries Basic

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S

StanDealAnswer

Level 2

If your client is in California or other state that was under a disaster declaration in 2023, the underpayment penalty is being reduced by the IRS. The period in 2023 prior to the postponed filing date is not considered underpaid.

BobKamman

Level 15

Which disaster area are you in? And you're not the first who didn't get the memo about suspended due dates for ES payments.

I'll let someone else post a link to at least one of the earlier threads here.

R

roxx13Author

Level 2

You're awesome! I just looked it up. We're in Los Angeles county and the disaster area declaration was issued on April 13th.

Thank you!

BobKamman

Level 15

I wouldn't have known about it myself if I hadn't found out from some of the smart people around here.

S

StanDealAnswer

Level 2

If your client is in California or other state that was under a disaster declaration in 2023, the underpayment penalty is being reduced by the IRS. The period in 2023 prior to the postponed filing date is not considered underpaid.

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