Proconnect doesn’t calculate the Utah tax penalty the same way that the Utah State tax commission does. I just got a late payment notice from Utah that charged a 10% penalty ($4,000 on $40,000 tax) for a return filed on 4/14 but not paid until 6/1. Proconnect only calculated a $20 FTP penalty.
BTW I worked for a previous firm that used UltraTax and they calculated it differently too.
I called the both the Utah Tax Commission and UltraTax and they both insisted that they were doing it right. Coincidently shortly after I called, Utah took down their penalty calculator on their website.
For anyone who is interested here are the Utah rules from Pub 58.
We may assess a late payment penalty for payments you make after the due date.
To avoid a late payment penalty you must pay all tax due before the return due date, or pay all tax, interest and penalties:
- within 90 days of the due date with a late filed return,
- on the same day an amended return is filed, or
- within 30 days of an audit assessment. See number 5 under Penalty Detail, below.
The late payment penalties are as follows:
1.Return filed by due date but underpaid; or extension return filed but tax underpaid on original due date:
Days Late | Penalty |
1-5 | Greater of $20 or 2% of unpaid tax, fee or charge |
6-15 | Greater of $20 or 5% of unpaid tax, fee or charge |
16 or more | Greater of $20 or 10% of unpaid tax, fee or charge |
- Return filed after due date and not paid in full within 90 days of due date:
Days Late | Penalty |
91-95 | Greater of $20 or 2% of unpaid tax, fee or charge |
96-105 | Greater of $20 or 5% of unpaid tax, fee or charge |
106 or more | Greater of $20 or 10% of unpaid tax, fee or charge |
