Hello,

I filed 2022 California Form 540 NR tax return with a tax due of $5,000 before due date.

This is a first-year return for both Federal and CA state in US.

My client recently received a Notice from CA state. According to the notice, an underpayment penalty of $600 has been imposed on my client.

As this is my client’s first-year return, 2021 tax return was not required to be filed. Based on my understanding, the underpayment penalty should not be applicable to my client’s situation.

I would like to know that my understanding is incorrect.

Thank you for your help in advance.