Error: Form 2220, Page 2: A default interest rate is used on line 28
This happens when you don't have interest rate information required by the state for e-filing.
Error message
Form 2220, Page 2: A default interest rate is used on line 28. Interest rates must be updated to calculate the correct 2220 underpayment penalty. These rates are issued quarterly by the IRS.
Solution 1
This is a severe diagnostic and won’t keep the return from qualifying for e-filing.
While the IRS updates interest rates quarterly, the interest rates are not necessarily updated quarterly in the software. Therefore, you need to make sure the rates are current with what is in section 6621.
- InOrganizer, go to theEstimates and Penaltiesfolder.
- SelectUnderpayment of Estimates, then thePenalties/Interesttab
- In theUnderpayment Interest Rates (Overrides)section, enterRates. Rates are not updated quarterly in software.
- Do a full recompute, then recreate the e-file.
