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Screen DCUBTPen - District of Columbia Franchise Penalties and Interest (1040)

Overview

Use this screen to complete Form D-2220, District of Columbia Underpayment of Estimated Franchise Tax By Businesses, and the District of Columbia Unincorporated Business Late Filing Interest and Penalty Worksheets.

General Information

Use this section to enter information for Form D-2220 and late filing interest and penalties calculations.
If the date entered in this field is later than the return due date, UltraTax CS automatically calculates the penalty for failure to pay (FTP), the penalty for failure to file (FTF), and the interest on the underpayment. If you leave this field blank, it defaults to the return due date (original or extended). Interest and penalty amounts print on Form D-30, Page 2.
To suppress specific penalties, select the appropriate field.

Underpayment of Estimated Tax

Use this section to enter information for calculating Form D-2220 exceptions to penalties.
Use this field to enter the District of Columbia tax amount if it hasn't been proforma’d. UltraTax CS uses this information to calculate exceptions to the District of Columbia underpayment penalty. Note that UltraTax CS doesn't calculate the penalty for a short-year client. Leave this field blank if a tax return wasn't filed. If the client’s prior year tax liability was zero, enter
0
 (zero).
Enter
X
 if business was conducted in all 12 months of the prior year. If the client’s prior year tax liability was zero and business was conducted during the entire 12 months in the District of Columbia, enter
X
.

Annualized Income Installment Method

When income and deductions occur unevenly during the year, use this section to enter information for calculating the District of Columbia UBT Annualized Income Worksheet and Form DC-2220 penalties. UltraTax CS automatically enters the fourth quarter of annualized income and deductions and selects the checkbox on Form D-2220.

Waiver of Underpayment Penalty

Use this section to request a waiver of penalty amounts.
Use this statement window to enter an explanation if the taxpayer is requesting a waiver of the underpayment penalty. This entry is mandatory if the taxpayer requests a waiver.
UltraTax CS displays the amount entered here and the text "Waiver" on the D-2220. UltraTax CS subtracts this amount from the penalty calculation and transfers the difference to the tax return. You need to make an entry in the
Explanation of waiver
 field to include in the form calculation.
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