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Screen CAPen - California Penalties and Interest (1120)
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General Information
Date return filed
If the date entered here is later than the return due date, the application calculates the penalty for failure to pay, the penalty for failure to file, and the interest on the underpayment. If this is blank, the application defaults to the original due date of the return.
note
Use this to customize the date due in the filing instructions. Enter the date you want to appear in the filing instructions, and then insert the variable [date filed f/t] in place of the variable [due date ASAP f/t] in the filing instructions. If this is blank, the date defaults to the due date of the return (original or extended). For additional information, see Client documents overview.
If applicable, the application prints interest and penalty amounts on Side 2 based on the identifying codes in the table that follows:
Code | Penalty |
|---|---|
FTF | Failure to file |
FTP | Failure to pay |
INT | Interest due |
UP | Underpayment penalty |
Prior year tax
Enter last year’s tax. The application uses this amount to calculate Form 5806 exceptions.
note
The application doesn’t calculate the Form 5806 penalty for a short-year client
Prior year less than 12 months, if different from the federal Pen screen
To properly calculate the amounts for Form 5806, enter
X
if the preceding tax year was shorter than 12 months.Large corporation
The application calculates the exception for large corporations. Enter
X
if the corporation falls into this category. If this is blank, the application assumes that the large corporation rules do not
apply.Suppress penalties on return: Underpayment of estimated tax
Enter
X
to suppress the printing of Form 5806 and the calculation of the Form 5806 penalty on the return. The application prints Form 5806, marks the Form 5806 checkbox, and prints the amount of penalty using code UP
on Side 2 of the return, if this is blank and the underpayment penalty is due.note
The application prints Form 5806 whenever a penalty exists, even though this is inconsistent with the form’s instructions. If the underpayment of estimated tax suppression checkbox is marked, Form 5806 won’t print. To suppress the penalty but print the form, enter
X
for Underpayment of estimated tax
, select Setup, 1120 Corporation, California tab, and then select Tax Return. Select CA Form 5806 and then select Always if data
to force the application to always print the form when it contains relevant data.Suppress penalties on return: Late interest
Enter
X
to suppress the late payment interest on the return. The application prints the CA Late Filing Interest and Penalty Worksheet if this is blank and late interest is due. The CA Late Filing Interest and Penalty Worksheet will also print if Failure to file
or Failure to pay
are blank and a failure to file or failure to pay penalty exists.note
The application prints the CA Late Filing Interest and Penalty Worksheet when penalties or interest exist. If the
Late interest
, Failure to file
, and Failure to pay
checkboxes are all marked, the CA Late Filing Interest and Penalty Worksheet won’t print. To suppress the late interest, failure to file penalty, and failure to pay penalties on the return but print the worksheet, mark the Late interest
, Failure to file
, and Failure to pay
checkboxes, and then select Setup then 1120 Corporation. In the California tab, select Tax Return. Select the CA Late Filing Worksheet and then select Always if data
to force the application to always print the worksheet when it contains relevant data.Suppress penalties on return: Failure to file
Enter
X
to suppress the failure to file penalty on the return. The application prints the CA Late Filing Interest and Penalty Worksheet if this is blank and the failure to file penalty is due. The CA Late Filing Interest and Penalty Worksheet will also print if Late interest
or Failure to pay
are blank and late payment interest or a failure to pay penalty exists.note
The application prints the CA Late Filing Interest and Penalty Worksheet when penalties or interest exist. If the
Late interest
, Failure to file
, and Failure to pay
checkboxes are all marked, the CA Late Filing Interest and Penalty Worksheet won’t print. To suppress the late interest, failure to file penalty, and failure to pay penalties on the return but print the worksheet, mark the Late interest
, Failure to file
, and Failure to pay
checkboxes, and then select Setup then 1120 Corporation. In the California tab, select Tax Return. Select the CA Late Filing Worksheet then select Always if data
to force the application to always print the worksheet when it contains relevant data.Suppress penalties on return: Failure to pay
Enter
X
to suppress the failure to pay penalty on the return. The application prints the CA Late Filing Interest and Penalty Worksheet if this is blank and the failure to pay penalty is due. The CA Late Filing Interest and Penalty Worksheet will also print if Late interest
or Failure to file
are blank and late payment interest or a failure to file penalty exists.note
The application prints the CA Late Filing Interest and Penalty Worksheet when penalties or interest exist. If the
Late interest
, Failure to file
, and Failure to pay
checkboxes are all marked, the CA Late Filing Interest and Penalty Worksheet won’t print. To suppress the late interest, failure to file penalty, and failure to pay penalties on the return, but print the worksheet, mark the Late interest
, Failure to file
, and Failure to pay
checkboxes, and select Setup then 1120 Corporation. In the California tab, select Tax Return. Select the CA Late Filing Worksheet and then select Always if data
to force the application to always print the worksheet when it contains relevant data.Annualized Income Method
Annualized income exception method
To calculate the underpayment penalty using one of the annualized income exceptions, enter a code for the type of exception used. Enter a code directly or select one from the dropdown.
Taxable income
If you enter an annualized income exception method preceding, enter the taxable income earned for the 4 periods that correspond to the option selected for
Annualized income exception method
.Sec 23802(e) deduction (S Corp)
If you enter an annualized income exception preceding, enter the Section 23802(e) deduction for the 4 periods that correspond to the option selected for
Annualized income exception method
.Tax credits
If you enter an annualized income exception preceding, enter the tax credits for the 4 periods that correspond to the option selected for
Annualized income exception method
.Other taxes
If you enter an annualized income exception preceding, enter the other taxes for the 4 periods that correspond to the option selected for
Annualized income exception method
.Adjusted Seasonal Method
Taxable income
2022
/ Taxable income 2023
/ Taxable income 2024
To calculate the annualized seasonal income method, enter the taxable income earned in the prior years for the 1st three, five, eight, and eleven months, respectively.
Taxable income
2025
To calculate the annualized seasonal income method, enter the taxable income earned in the current year for the 1st three, five, eight, and eleven months, respectively.
Taxable income
2022
/ Taxable income 2023
/ Taxable income 2024
To calculate the annualized seasonal income method, enter the taxable income earned in the prior years for the 1st four, six, nine, and twelve months, respectively.
Sec 23802(e) deduction (S Corp)
If you enter an annualized income exception preceding, enter the Section 3802(e) deduction for the 4 periods that correspond to the option selected for
Annualized income exception method
.Tax credits
To calculate the annualized seasonal income method, enter the current-year tax credits for the years indicated for the 1st four, six, nine, and twelve months, respectively.
Other taxes
To calculate the annualized seasonal income method, enter the current-year other taxes for the years indicated for the 1st four, six, nine, and twelve months, respectively.