To generate interest and penalty amounts for a late return:
- Go to the Input Return tab.
- On the left-side menu, select Payments, Penalties & Extensions.
- Click on Penalties and Interest (2210).
- Enter the date this return will be filed in the Filing date field.
- On the top navigation menu, select Late Return Penalty & Interest.
- 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.
Troubleshooting individual diagnostic ref. 513 - IRS interest rate(s) for interest/penalty missing
The following critical diagnostic is generating in ProConnect:
IRS interest rate(s) for interest/penalty missing. Enter interest rates in Options. (ref. #513).
If you've entered a filing date for the return that has a date with no interest rate entered, this diagnostic will generate. To clear the diagnostic, you must either wait until the interest rate is released for the time period or remove the filing date from the return.
Enter the filing date by going to the Input Return tab, then Payments Penalties & Extensions ⮕ Penalties and Interest. Now you can enter the applicable information.
For example, if the filing date is 10/3, make sure there are interest rates in the first 3 periods (04/15-06/30, 07/01-09/30 and 10/01-12/31.) Usually, you'll need to input the following quarter's interest rate to satisfy the diagnostic.