Welcome back! Ask questions, get answers, and join our large community of tax professionals.
  • Sign In
  • Created with Sketch. We apologize for the inconvenience: Our community is currently in read-only mode while we perform essential maintenance. Some features may be temporarily unavailable. We’re working hard to restore full access as quickly as possible.
    cancel
    Showing results for 
    Search instead for 
    Did you mean: 

    Utah penalty not calculating right.

    taxsolutions
    Level 4

    Proconnect doesn’t calculate the Utah tax penalty the same way that the Utah State tax commission does. I just got a late payment notice from Utah that charged a 10% penalty ($4,000 on $40,000 tax) for a return filed on 4/14 but not paid until 6/1. Proconnect only calculated a $20 FTP penalty.

    BTW I worked for a previous firm that used UltraTax and they calculated it differently too.

    I called the both the Utah Tax Commission and UltraTax and they both insisted that they were doing it right. Coincidently shortly after I called, Utah took down their penalty calculator on their website.

    For anyone who is interested here are the Utah rules from Pub 58.

     

    We may assess a late payment penalty for payments you make after the due date.

    To avoid a late payment penalty you must pay all tax due before the return due date, or pay all tax, interest and penalties:

    1. within 90 days of the due date with a late filed return,
    2. on the same day an amended return is filed, or
    3. within 30 days of an audit assessment. See number 5 under Penalty Detail, below.

    The late payment penalties are as follows:

    1.Return filed by due date but underpaid; or extension return filed but tax underpaid on original due date:

    Days Late

    Penalty

    1-5

    Greater of $20 or 2% of unpaid tax, fee or charge

    6-15

    Greater of $20 or 5% of unpaid tax, fee or charge

    16 or more

    Greater of $20 or 10% of unpaid tax, fee or charge

    1. Return filed after due date and not paid in full within 90 days of due date:

    Days Late

    Penalty

    91-95

    Greater of $20 or 2% of unpaid tax, fee or charge

    96-105

    Greater of $20 or 5% of unpaid tax, fee or charge

    106 or more

    Greater of $20 or 10% of unpaid tax, fee or charge

     

    1 Best Answer

    Accepted Solutions
    George4Tacks
    Level 15

    Is this how you set up the penalty computation?

    penalty 1.jpgpenalty 2.jpg

    Did you then click the next "tab" for State & Local Int. Rates and enter the UT rates? .

    From  https://accountants.intuit.com/support/en-us/help-article/federal-taxes/enter-federal-state-interest...

     To generate interest and penalty amounts for a late return:

    1. Go to the Input Return tab.
    2. On the left-side menu, select Payments, Penalties & Extensions.
    3. Click on Penalties and Interest (2210).
    4. Enter the date this return will be filed in the Filing date field.
    5. On the top navigation menu, select Late Return Penalty & Interest.
    6. Enter 1 in the Interest (1=automatic), Late filing of return (1=automatic), and Late payment of tax (1=automatic) fields
      • The federal interest rates are built into the program.
      • If state interest rates are needed, select State & Local Int. Rates across the top and enter the applicable interest rates.

    Answers are easy. Questions are hard!

    View solution in original post

    6 Comments 6
    sjrcpa
    Level 15

    When you filed the return did you indicate payment would not be made until June? (If you can even do that).


    The more I know the more I don’t know.
    BobKamman
    Level 15

    I wouldn't just call those penalty rules harsh.  I would call them a disgusting abomination.  

    George4Tacks
    Level 15

    Is this how you set up the penalty computation?

    penalty 1.jpgpenalty 2.jpg

    Did you then click the next "tab" for State & Local Int. Rates and enter the UT rates? .

    From  https://accountants.intuit.com/support/en-us/help-article/federal-taxes/enter-federal-state-interest...

     To generate interest and penalty amounts for a late return:

    1. Go to the Input Return tab.
    2. On the left-side menu, select Payments, Penalties & Extensions.
    3. Click on Penalties and Interest (2210).
    4. Enter the date this return will be filed in the Filing date field.
    5. On the top navigation menu, select Late Return Penalty & Interest.
    6. Enter 1 in the Interest (1=automatic), Late filing of return (1=automatic), and Late payment of tax (1=automatic) fields
      • The federal interest rates are built into the program.
      • If state interest rates are needed, select State & Local Int. Rates across the top and enter the applicable interest rates.

    Answers are easy. Questions are hard!
    taxsolutions
    Level 4

    I didn't calculate the penalty when filing because I thought they would pay on time. I went in after the fact and noticed. Proconnect won't trigger the 10% penalty until after 10/15. 

    0 Cheers
    taxsolutions
    Level 4

    Yes that's how I set it up.

    0 Cheers
    taxsolutions
    Level 4

    I thought that I was the only one who thought that. Its nice to know I'm not alone.

    0 Cheers