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:
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 |
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 |
I wouldn't just call those penalty rules harsh. I would call them a disgusting abomination.
Is this how you set up the penalty computation?
Did you then click the next "tab" for State & Local Int. Rates and enter the UT rates? .
To generate interest and penalty amounts for a late return:
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.
Yes that's how I set it up.
I thought that I was the only one who thought that. Its nice to know I'm not alone.
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