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2024 Underpayment Penalty Refunds

roxx13
Level 2

I've had 2 clients whose underpayment penalties were partially refunded. This has never happened before. Does anyone know if there is/was a glitch in the software's calculation?

 

 

 

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StanDeal
Level 2

If your client is in California or other state that was under a disaster declaration in 2023, the underpayment penalty is being reduced by the IRS.  The period in 2023 prior to the postponed filing date is not considered underpaid.

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6 Comments 6
BobKamman
Level 15

Which disaster area are you in?  And you're not the first who didn't get the memo about suspended due dates for ES payments. 

I'll let someone else post a link to at least one of the earlier threads here.   

roxx13
Level 2

You're awesome! I just looked it up. We're in Los Angeles county and the disaster area declaration was issued on April 13th.

Thank you!

 

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BobKamman
Level 15

I wouldn't have known about it myself if I hadn't found out from some of the smart people around here.  

Just-Lisa-Now-
Level 15
Level 15

In CA we had an extension on estimated payments that Intuit doesnt calculate for, so the estimated tax penalty was too high for lots of people resulting in penalty refunds.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Skylane
Level 11
Level 11

Easier to explain a refund than a deficiency 

If at first you don’t succeed…..find a workaround
StanDeal
Level 2

If your client is in California or other state that was under a disaster declaration in 2023, the underpayment penalty is being reduced by the IRS.  The period in 2023 prior to the postponed filing date is not considered underpaid.