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Data entry

View and update federal interest rates

Planner CS is preloaded with all quarterly federal interest rates that have been announced by the IRS at the time of its release. These interest rates are used for the underpayment penalty calculation (Form 2210).

View interest rates used to calculate the federal underpayment penalty

note
Conditions must exist such that the taxpayer is subject to the underpayment penalty to view these rates in the plan.
  1. In the federal module, select the
    Payments
     button and the Underpayment tab.
  2. Mark the checkbox in the
    Compute Penalty?
     field for each year that the penalty should be calculated.
  3. Scroll down to the Underpayment Interest Rates section of the window. Quarterly interest rates are displayed in the
    April 15 - June 30
    ,
    July 1 - Sept 30
    ,
    Oct 1 - Dec 31
    , and
    Jan 1 - April 15
     fields.

Updating future interest rates as they are made available by the IRS

  1. With a plan open, choose
    Tools
    , then
    Federal Interest Rates
    .
  2. In the
    Federal Interest Rates
     window, enter the new rates in the quarterly fields.
  3. Select
    OK
    . The new rates will be inserted into the plan.
    note
    In periods for which the quarterly interest rate hasn’t yet been announced, if you haven’t entered a rate in the
    Federal Interest Rates
     window, the quarterly interest rate fields will default to the last known interest rate.

This article applies to:

  • Product: Planner CS