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1040 penalties

Late filing, late payment, and underpayment penalties calculate automatically based on the information in the 1040 return. For more information about how penalties are calculated, see the IRS guidelines on Understanding Penalties and Interest.

Late filing or failure to pay

This amount calculates when a balance due return is filed after the due date. The amount is based on April 15, even when that date falls on a weekend or holiday. You can see the amount with the code FTF at the end of Form 1040, Page 2.
If you think a penalty shouldn't calculate, do the following.
  1. In the
    Payments
     folder, then the
    Ext
     screen, verify that the
    Calculate extension
     field is correct.
  2. Open the
    Pen
     screen and verify that the
    Date 2022 return filed
     field has the correct date. Depending on the code in the
    Calculate extension
     field, a date after April 18, 2023 or October 16, 2023 might cause this penalty to calculation.
  3. Verify the balance due on Form 1040. If a balance shouldn't be due, review your data entry.
To remove this penalty from the return, enter
X
 in the
Suppress penalties on Form 1040: Failure to File (FTF)
 field on the
Pen
 screen in the
Payments
 folder. If you suppress the penalty, the IRS will send the taxpayer a bill.

Late payment or failure to pay

This amount calculates when 90% of the tax liability hasn’t been paid by April 18, 2023. The penalty amount calculates based on April 15, even when that date falls on a weekend or holiday. You can see the amount with the code FTF at the end of Form 1040, Page 2, and the detailed calculation appears in
Forms
 view, then the
Late
 folder.
If you think a penalty shouldn't calculate, do the following.
  1. In the
    Payments
     folder, then the
    Ext
     screen, verify that the
    Calculate extension
     field is correct.
  2. Open the
    Pen
     screen and verify that the
    Date 2022 return filed
     field has the correct date.
  3. Open the
    Est
     screen and verify the
    Paid with 4868 ext
     field is correct.
  4. If the fields are correct or you didn’t file an extension, check any withholding or payment information, including the
    2022 Federal Payments
     section of the
    Est
     screen.
To remove the penalty from the return, enter
X
 in the
Suppress penalties on Form 1040: Failure to Pay (FTP)
 field on the
Pen
 screen in the
Payments
 folder. If you suppress the penalty, the IRS will send the taxpayer a bill.

Late interest

Interest calculates for late filing and/or late payment penalties, and this amount appears with the code INT at the end of Form 1040, Page 2. The penalty amount calculates based on April 15, even when that date falls on a weekend or holiday. You can review the calculation in
Forms
 view in the
Late
 folder.
Penalties calculate for 2 years after the tax year of the return. After 2 years, you need to either calculate penalties manually or file the return without penalties and allow the IRS to send a bill.
To remove the penalty from the return, enter
X
 in the
Suppress penalties on Form 1040: Late filing interest (INT)
 field on the
Pen
 screen in the
Payments
 folder. If you suppress the penalty, the IRS will send the taxpayer a bill.

Amended returns

The IRS calculates penalties for amended returns, so they aren't calculated in UltraTax CS.

Underpayment of estimated tax

This amount calculates on Form 2210. If the taxpayer made payments with the estimates or the extension and you think the penalty shouldn't calculate, open the
Est
 screen in the
Payments
 folder and verify that the
Federal Payments
 section contains data.
For estimate payments, do 1 of the following:
  • Enter the total amount paid in the
    Enter total
     field.
  • Select the
    Treat calculated amounts as paid
     checkbox when amounts are in the
    Calculated amount
     column.
  • Enter the
    Date paid
     and
    Amount paid
     for each quarter.
For extension payments, enter any payment made with the extension in the
Paid with 4868 ext
 or
Paid with 2350 ext
 field.

Waiver

The IRS may waive the penalty for various reasons, such as if the taxpayer lives in a federal disaster area. See the Form 2210 instructions for more information.
To request a waiver, open the
Pen
 screen in the
Payments
 folder.
  • To request to waive 100 percent of the underpayment penalty, enter
    X
     in the
    Have waiver amount equal to penalty calculated
     field.
  • To enter a specific amount, use the
    Enter amount
     field.
note
You need to complete the
Explanation of waiver
 field to file electronically.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual

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