ProConnect Tax currently has no way to automatically calculate the federal interest due, as there is no place to enter the federal interest rates. At this time, the only solution is to manually calculate the interest due and enter it in the Interest field on the Penalties and Interest input screen.
To manually generate interest and penalty amounts for a late return:
- Go to the Input Return tab.
- On the left-side menu, select Payments, Penalties & Extensions.
- Click on Penalties and Interest (2210).
- Enter the date this return will be filed in the Filing date field.
- On the top navigation menu, select Late Return Penalty & Interest.
- Enter the calculated amount of interest in the Interest field.
For Tax Year 2023: To automatically calculate the state or federal interest due, you must enter the number one (1), or the specific amount in the
Interest (1=automatic) field and input the state interest rates in the State Interest Rates section of the Penalties and Interest (2210) input screen.
Note: Federal rates can only be automatically calculated in the 2023 release of the program. This capability will roll out for the 2022 and 2021 versions of ProConnect later this year.
Troubleshooting individual diagnostic ref. 513 - IRS interest rate(s) for interest/penalty missing
The following critical diagnostic is generating in ProConnect:
IRS interest rate(s) for interest/penalty missing. Enter interest rates in Options. (ref. #513).
If you've entered a filing date for the return that has a date with no interest rate entered, this diagnostic will generate. To clear the diagnostic, you must either wait until the interest rate is released for the time period or remove the filing date from the return.
Enter the filing date by going to the Input Return tab, then Payments Penalties & Extensions ⮕ Penalties and Interest. Now you can enter the applicable information.
For example, if the filing date is 10/3, make sure there are interest rates in the first 3 periods (04/15-06/30, 07/01-09/30 and 10/01-12/31.) Usually, you'll need to input the following quarter's interest rate to satisfy the diagnostic.