California Disaster Relief for Estimates

[Hobbes27]

Excuse me if this has already been asked.  I searched the forums and couldn't find it.

Because of the rains that hit California, both Federal and California estimates were delayed  for the first estimate.   However, Lacerte is still calculating the penalties using the old method.  Is there a box to check to have Lacerte calculate the penalties the right away?

The best thing I could come up with is using the annualized method for 2023 and entering zeroes for the first two estimates and calculating the rest of the estimates normally.    That isn't perfect, because the first estimates were delayed past Sept 15, but its close enough.   But the main problem in doing that, is that it doesn't help you if you are doing 110% of 2022.

So other than, and just using common sense and eyeballing if there should be penalty and possibly suppressing the penalty, if you believe you handled the estimates correctly, what else can we do with regards to estimated penalties for CA taxpayers in 2023?

[Karl]

I don't think there is or will be a good fix for this.  I've been taking the approach to evenly divide all estimates paid by Nov 16 by three and manually inputting them as paid on time in the Q1, Q2 & Q3 inputs.  I realize CA estimates aren't due on that schedule, but I'm checking to make sure no penalty is generating and moving on.  It's not perfect, but that's how I'm handling it as of now.

[taxed2max]

Yes this has been asked before but please keep writing up this question.  Seems like Lacerte wants to avoid it, but with many more inquiries perhaps they will get the idea to do something.  I've been asking since the 23 software came out, but getting nowhere with tech support.

Personally I am thinking of applying first three estimates all into the 1st qtr  (if no tax due for Q1,2 or 3 until Nov 16, then how could there be any underpayment for these periods?).  Then if penalty is still calculated must do a manual calculation  for post Nov 16 and enter as override/waiver in screen 8.   

[George4Tacks]

https://accountants.intuit.com/community/lacerte-tax-discussions/discussion/underpayment-penalties/0...

[taxed2max]

Also note that this week IRS granted extensions again this year to San Diego County because of the rains, and who knows if they will extend it further throughout the state.  But this means that next year we will have this very same issue coming up at least for San Diego.  So please Lacerte, update the program to account for these modified payment deadlines.

[Karl]

Heads up, this is just a peer user forum.  Lacerte reps don't read these or chime in (with rare exception).