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Anybody else getting penalty adjustment letters from PA?
The underpayment penalty calculation is based on the daily interest rate times the number of days a quarter is late. Lacerte considers the late period to end when a future quarter is overpaid enough to cover the prior quarter underpayment. That makes logical sense since the state has the money. But it's wrong.
The state's REV-1630 instructions say to end the late period when the ENTIRE annual balance is paid in. In some cases, the 1st quarter late period can theoretically be up to 365 days if there ends up being a balance due on the final return.
Lacerte uses a shorter ending late period date - undercalculating the penalty. There's not even a way to override the amounts. Now that the interest rate is 8 percent, it makes for a substantial penalty adjustment when the notice comes out.
Is it just me or does the software need fixed?
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From what I have read, in my opinion it appears others have received penalty/interest letters also.