Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Payments

1120 penalties

Calculate penalties

Penalties calculate automatically based on the date entered in the
Payments
 folder, the
Pen
 tab, then the
Date return filed
 field. To ensure the correct calculations, enter the actual date the return was filed. If that field is blank, UltraTax assumes the return was filed on the original due date.

Stop penalties from calculating

To remove penalties, go to the
Payments
 tab, then the
Pen
 tab. Under
Suppress penalties on return
, mark the box next to the kind of penalty you want to suppress.

View penalties

You might get the following penalties:
  • Late filing interest
  • Failure to file (FTF)
  • Failure to pay (FTP
These penalties print at the bottom of Form 1120 page 1. For detailed calculations, go to the Form view, select the
Late
 folder and review the
Late Filing Penalties and Interest Worksheet
.

Underpayment of estimated tax

Go to the Form view, select the
2220
 folder and review
Form 2220
.

Troubleshoot penalties

The filing deadline for some Corporate returns with taxable years beginning after Dec. 31, 2015 changed due to the FAST Act. If the return wasn't filed or extended on time, penalties apply.
Per the IRS, an extension of time to file doesn't grant you any extension of time to pay. Therefore, failure to pay and late filing interest penalties may calculate on extended returns if no payment was made with the extension.
Review the following troubleshooting tips:
  • For details on penalty calculations, check page 6 of IRS Publication 542.
  • Go to the
    Payments input
     folder then the
    Pen
     tab, and find the
    Date return filed
     field. Penalties calculate based on that date, so verify the date is correct.
  • Go to the
    Payments
     folder then
    PmtExt
     tab.
    • Go to the
      Extended due date
       field at the bottom of the page. If the return was extended, enter the extended due date there. If the return wasn't extended, this field should be blank.
    • Go to the
      Paid with extension
       field. If a payment was sent with the extension, enter the payment amount.
  • UltraTax CS will only calculate the previous 2 years of interest rates. If you're filing a return older than 2 years, you'll need to calculate the penalties manually.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close