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Level 4
June 17, 2025
Solved

No Interest & Penalties Calculations for State Returns?

  • June 17, 2025
  • 2 replies
  • 13 views

Where do I elect to have ProSeries Professional automatically calculate late payment penalties and interest for state returns?

Or are my options to either manually calculate state interest & penalties or wait for the client to receive a letter for state interest & penalties after filing?

Best answer by TaxGuyBill

I doubt if ProSeries does that.  ProSeries is only mid-level software, and it is unlikely they will ever add a calculation for penalties/interest for states (it even needs some manual input for Federal interest).

That means yes, you need to either do it manually or have the state send the client a notice.  Personally, I just give the client a super-rough estimate and tell them the IRS and State will send a bill for the exact amount.

2 replies

Level 15
June 17, 2025

I doubt if ProSeries does that.  ProSeries is only mid-level software, and it is unlikely they will ever add a calculation for penalties/interest for states (it even needs some manual input for Federal interest).

That means yes, you need to either do it manually or have the state send the client a notice.  Personally, I just give the client a super-rough estimate and tell them the IRS and State will send a bill for the exact amount.

DENNYCARRAuthor
Level 4
June 17, 2025

ah, ok - what software do you put above mid-level?

BobKamman
Level 15
June 17, 2025

If clients can afford to pay penalty and interest, they can afford to pay you for five additional minutes of work.  Or maybe two minutes if this website works (I haven't tried it). 

https://www.irscalculators.com/interest-calculator