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Screen CAPen - California Penalties and Interest (1040)

Overview

Use this screen to complete the Interest & Penalties section of Form 540, California Resident Income Tax Return or Form 540NR, California Nonresident or Part-Year Resident Income Tax Return, and Form 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries.

General Information

If the date entered in this field is later than the return due date, UltraTax CS automatically calculates the penalty for failure to pay, the penalty for failure to file, and the interest on the underpayment. If this field is blank, it defaults to the due date (original or extended) of the return.
Add field:
Disaster relief date
When appropriate, enter a date in this field to change the original due date of the Form 540/540NR and/or Form 568 returns reflected in penalty calculations and filing instructions. The Disaster relief date entered on federal Pen Screen transfers to this field.

Underpayment Penalty Current Year Data

Enter information for the calculation of Form 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries or Form 5805F, Underpayment of Estimated Tax by Farmers and Fishermen, in this section.
Enter
1
 or
2
 to calculate Form 5805F instead of Form 5805. This information transfers from federal Pen Screen.
Use the statement dialog to enter an explanation, if the taxpayer is requesting a waiver of the underpayment penalty. An entry in this field is mandatory when an amount is requested to be waived.
The amount entered in this field displays on Form 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries, or Form 5805F, Underpayment of Estimated Tax by Farmers and Fishermen, with the text waiver. The penalty amount that transfers to Forms 540 and 540NR calculates the amount, less the amount requested to be waived. An entry in the
Explanation of reasonable cause
 field must be made for this field to be included in the form calculation.
Use these fields to enter California withholding if not withheld in required installments. Total withholding entered in federal screens defaults to 30 percent for the first quarter, 40 percent for the second quarter, 0 (zero) percent for the third quarter, and 30 percent for the fourth quarter.
Enter
X
 to force UltraTax CS to calculate Form 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries, without regard to exceptions to the penalty.
UltraTax CS defaults to calculating the long method when either the annualization worksheet is used, or withholdings or estimated payments are not made in the required installments. Enter
X
 to force UltraTax CS to calculate Form 5805 using either the short or long method.

Underpayment Penalty Prior Year Data

Enter prior-year information for the calculation of Form 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries, or Form 5805F, Underpayment of Estimated Tax by Farmers and Fishermen, in this section.
UltraTax CS uses this information to determine exceptions to the underpayment penalty based on prior-year tax.
Enter
X
 if the taxpayer's prior-year California tax return was for less than a full 12 months. Do not mark this field if the taxpayer qualifies for the nonresident or new resident exemption.

Annualized Income Installment Method

Enter information for the calculation of the Annualized Income Installment Method schedule of Form 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries, in this section.
Enter annualized income from all sources for the periods indicated. UltraTax CS uses this information to complete Form 5805, Part III, Annualized Income Installment Method Schedule.
Enter annualized income from California sources for the periods indicated. UltraTax CS uses this information to complete Form 5805, Part III, Annualized Income Installment Method Schedule for part-year and nonresident returns.
If you are calculating Form 5805 for a taxpayer subject to Form 3800, Tax Computation for Certain Children with Investment Income, enter the annualized total adjusted gross income from Form 540 or 540NR for each period in these fields.
Enter the annualized itemized deduction amounts for the periods indicated. If you are calculating Form 5805 for a taxpayer subject to Form 3800, Tax Computation for Certain Children with Investment Income, enter the annualized itemized deductions from Form 540 or 540NR in these fields.
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