Failure to Pay penalty on return that was extended
If an extension is calculated and 90% of the tax liability hasn't been paid, the application will show a Failure to Pay (FTP) penalty calculation. If the taxpayer did pay 90% of the tax liability and the application is still calculating an FTP penalty, review the following:
- Calculate extensionon the Ext screen in the Payments folder. IfCalculate extensionis blank, the application won't recognize that an extension was filed, even if there is an extended due date entered.
- Dateon the2025return filedPenscreen in the Payments folder. Verify that the date used is correct, as it is used when calculating penalties..
- Paid with 4868 exton theEstscreen in the Payments folder. If the amount is not at least 90% of the tax liability on the tax return, the application will calculate the FTP penalty.
