1120 penalties
Calculate penalties
Penalties calculate automatically based on the date entered in the
Payments
folder, the Pen
tab, then the Date return filed
field. To ensure the correct calculations, enter the actual date the return was filed. If that field is blank, UltraTax assumes the return was filed on the original due date. Stop penalties from calculating
To remove penalties, go to the
Payments
tab, then the Pen
tab. Under Suppress penalties on return
, mark the box next to the kind of penalty you want to suppress.View penalties
You might get the following penalties:
- Late filing interest
- Failure to file (FTF)
- Failure to pay (FTP
These penalties print at the bottom of Form 1120 page 1. For detailed calculations, go to the Form view, select the
Late
folder and review the Late Filing Penalties and Interest Worksheet
.Underpayment of estimated tax
Go to the Form view, select the
2220
folder and review Form 2220
.
note
There's a
Worksheet
tab at the top of this form with additional calculations.Troubleshoot penalties
The filing deadline for some Corporate returns with taxable years beginning after Dec. 31, 2015 changed due to the FAST Act. If the return wasn't filed or extended on time, penalties apply.
Per the IRS, an extension of time to file doesn't grant you any extension of time to pay. Therefore, failure to pay and late filing interest penalties may calculate on extended returns if no payment was made with the extension.
Review the following troubleshooting tips:
- For details on penalty calculations, check page 6 of IRS Publication 542.
- Go to thePayments inputfolder then thePentab, and find theDate return filedfield. Penalties calculate based on that date, so verify the date is correct.
- Go to thePaymentsfolder thenPmtExttab.
- Go to theExtended due datefield at the bottom of the page. If the return was extended, enter the extended due date there. If the return wasn't extended, this field should be blank.
- Go to thePaid with extensionfield. If a payment was sent with the extension, enter the payment amount.
- UltraTax CS will only calculate the previous 2 years of interest rates. If you're filing a return older than 2 years, you'll need to calculate the penalties manually.
