FTB penalty

[Strongsilence-CPA]

My client got a notice from the California FTB state he owes $34.51 in interest and penalties. He will pay it.  

Are Lacerte's underpayment and late payment penalty and interest calculations accurate? I always list the date filed and the interest rates are correct - I assume.  

I'm getting a few more of these notices each year so I would like to know whether it is Lacerte that needs to improve this module, or me, or even the FTB.

[sjrcpa]

"I always list the date filed"

Is that the same as date paid?

[abctax55 · Accepted solution]

Lacerte was not 'reprogrammed' to deal with the extended date (of 11.16.23) to pay estimates last year.

If you didn't manipulate the date of payments to account for this, the math will be off.

And I don't think the FTB is/was/cares about figuring it out themselves.

Write a letter challenging it - if that costs less than the $ 34.51 - or if you like tilting at windmills

[Strongsilence-CPA]

It is not the same.  I see your point and I think the payment date, being after filing, results in additional interest on the state notice.

Form 8 asks for Filing date and then uses that to calculate interest.  

[Strongsilence-CPA]

"Lacerte was not 'reprogrammed' to deal with the extended date (of 11.16.23) to pay estimates last year."

Yes, I forgot about that.  Thanks.