Common Questions on Form 2220 in Lacerte

How do I check the box on Line 6:

Lacerte does not support the seasonal installment method so this check box cannot be checked.

How do I check the box on Line 7:

1. Navigate to Screen 11, Penalties & Interest.
2. Scroll to the section Annualized Income Installment Method (2220).
3. Ensure that the Taxable Income for each period has been entered in the subsection Taxable Income (-1=none).

Note: If the corporation's income varied during the year because, for example, it operated its business on a seasonal basis, it may be able to lower or eliminate the amount of one or more required installments by using the adjusted seasonal installment method and/or the annualized income installment method. Lacerte doesn't support the seasonable installment method so Form 2220 must be completed manually to use it.

How do I check the box on Line 8:

1. Navigate to Screen 11, Penalties & Interest.
2. Scroll to the section Underpayment penalty (2220).
3. Ensure that the prior year tax amount has been entered in the field 20XX tax (-1=none) (Code 2).

Note: A large corporation is a corporation (other than an S corporation) that had, or whose predecessor had, taxable income (defined below) of $1 million or more for any of the 3 tax years immediately preceding the current tax year, or if less, the number of years the corporation has been in existence. A large corporation includes a large organization as defined in the instructions for Form 990-W. To force Lacerte to recognize the business as a large corporation, enter 1 into the field 1="large corporation".