1040 penalties
Late filing, late payment, and underpayment penalties calculate automatically based on the information in the 1040 return. For more information about how penalties are calculated, see the IRS guidelines on Understanding Penalties and Interest.
Late filing or failure to pay
This amount calculates when a balance due return is filed after the due date. The amount is based on April 15, even when that date falls on a weekend or holiday. You can see the amount with the code FTF at the end of Form 1040, Page 2.
If you think a penalty shouldn't calculate, do the following.
- In thePaymentsfolder, then theExtscreen, verify that theCalculate extensionfield is correct.
- Open thePenscreen and verify that theDatefield has the correct date. Depending on the code in the2025return filedCalculate extensionfield, a date after April 15 or October 15 might cause this penalty to calculate.
- Verify the balance due on Form 1040. If a balance shouldn't be due, review your data entry.
To remove this penalty from the return, enter
X
in the Suppress penalties on Form 1040: Failure to File (FTF)
field on the Pen
screen in the Payments
folder. If you suppress the penalty, the IRS will send the taxpayer a bill.Late payment or failure to pay
This amount calculates when 90% of the tax liability hasn’t been paid by April 15,
2025
. The penalty amount calculates based on April 15, even when that date falls on a weekend or holiday. You can see the amount with the code FTF at the end of Form 1040, Page 2, and the detailed calculation appears in Forms
view, then the Late
folder.If you think a penalty shouldn't calculate, do the following.
- In thePaymentsfolder, then theExtscreen, verify that theCalculate extensionfield is correct.
- Open thePenscreen and verify that theDatefield has the correct date.2025return filed
- Open theEstscreen and verify thePaid with 4868 extfield is correct.
- If the fields are correct or you didn’t file an extension, check any withholding or payment information, including thesection of the2025Federal PaymentsEstscreen.
To remove the penalty from the return, enter
X
in the Suppress penalties on Form 1040: Failure to Pay (FTP)
field on the Pen
screen in the Payments
folder. If you suppress the penalty, the IRS will send the taxpayer a bill.Late interest
Interest calculates for late filing and/or late payment penalties, and this amount appears with the code INT at the end of Form 1040, Page 2. The penalty amount calculates based on April 15, even when that date falls on a weekend or holiday. You can review the calculation in
Forms
view in the Late
folder.Penalties calculate for 2 years after the tax year of the return. After 2 years, you need to either calculate penalties manually or file the return without penalties and allow the IRS to send a bill.
To remove the penalty from the return, enter
X
in the Suppress penalties on Form 1040: Late filing interest (INT)
field on the Pen
screen in the Payments
folder. If you suppress the penalty, the IRS will send the taxpayer a bill.Amended returns
The IRS calculates penalties for amended returns, so they aren't calculated in UltraTax CS.
Underpayment of estimated tax
This amount calculates on Form 2210. If the taxpayer made payments with the estimates or the extension and you think the penalty shouldn't calculate, open the
Est
screen in the Payments
folder and verify that the Federal Payments
section contains data.For estimate payments, do 1 of the following:
- Enter the total amount paid in theEnter totalfield.
- Select theTreat calculated amounts as paidcheckbox when amounts are in theCalculated amountcolumn.
- Enter theDate paidandAmount paidfor each quarter.
For extension payments, enter any payment made with the extension in the
Paid with 4868 ext
or Paid with 2350 ext
field.Waiver
The IRS may waive the penalty for various reasons, such as if the taxpayer lives in a federal disaster area. See the Form 2210 instructions for more information.
To request a waiver, open the
Pen
screen in the Payments
folder.- To request to waive 100 percent of the underpayment penalty, enterXin theHave waiver amount equal to penalty calculatedfield.
- To enter a specific amount, use theEnter amountfield.
note
You need to complete the
Explanation of waiver
field to file electronically.
