Underpayment Penalty Calculation in disaster relief areas

[Ron P]

It does not appear that Lacerte takes into account that estimated tax payments were not due until November 16, 2023.  Form 5805 shows a penalty of $2,439 and my hand calculation indicates a penalty of $40.  Is there an entry in Lacerte that indicates "tax relief" or do they just go by the zip code.  Anyone else having this problem?

[abctax55 · Accepted solution]

Enter the payments as if paid on the 'proper' dates.

Lacerte will NOT be reprogramming for this; they didn't do anything at all last year when this came down regarding different filing dates etc.

[Ron P]

Great idea.  Exactly what I did - no penalty.  Taxpayer would have paid on estimated taxes on time except for my advice to defer the payment for 6 months.  $250K invested in short-term treasuries yielding 5.25% (state tax-free) resulted in about $6,500 in interest income.  Better use of her cash.  Thanks for the advice.