Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Lacerte calculates late payment interest but not penalty for late payment of tax

Rolson5501
Level 1

Using Lacerte.  My Form 1040 client has a modest balance due of $340 for 2023.  The client has filed an extension of time to file for 2023.  The tax return will be filed and payment will be made here in August 2024. Within Screen 8 - Penalties, I have indicated to Lacerte to calculate late payment interest and the penalty for late payment of tax and have provided an expected filing date in August.  Lacerte is calculating the interest on late payment of tax but is not calculating the penalty for late payment of tax.  Usually, these go hand in hand.  Does anyone have any ideas as to why Lacerte in not calculating the penalty for late payment?

0 Cheers
2 Comments 2
sjrcpa
Level 15

No late payment penalty in an extended return if 90% of tax liability was paid by April 15.


Ex-AllStar
TaxGuyBill
Level 15

@sjrcpa wrote:

No late payment penalty in an extended return if 90% of tax liability was paid by April 15.


 

Interesting, I didn't remember that.  After I read your comment I had to look that up (§301.6651-1(c)(3)).

Thank you.