2024 Underpayment Penalty Refunds

[roxx13]

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?

[BobKamman]

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]

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!

[BobKamman]

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-]

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.

[Skylane]

Easier to explain a refund than a deficiency 

[StanDeal · Accepted solution]

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.