Turbotax 2023 ignores California disaster relief November 16 extension on 5805

[zmansbr]

I must be missing something as Google returns nothing on this.

California extended filing and payment dates for estimated tax payments for 2023 to Nov 16. However, TurboTax does not reflect this extension in its penalty calculation for form 5805. It still uses 4/18, 6/15, 9/15 and 1/16/24 for calculating the penalty. There is a prompt to apply for a waiver (one reason listed is natural disaster), but I can't believe there isn't a dedicated prompt and method to figure this. Especially since penalty still may be owed (paid after 11/16 or underpayment etc).

Anyone have any insights/

[MonikaK1]

Because the Federal and state extended filing deadlines are available only for individuals living in areas impacted by official disaster declarations during specified dates, the deadlines themselves aren't updated in the software. The tax agencies made an administrative decision not to impose the penalties, but since the law itself didn't change, tax software including TurboTax still calculates the penalties. 

If you live in a federally declared disaster area and met the special filing and payment deadlines for that disaster, you qualify for an automatic underpayment penalty waiver. Even if the penalty is calculated on the return, the IRS should not charge the penalty. 

Visit the Other Tax Situations section and review the Underpayment Penalty information to confirm it is correct.

If you have taxes due with your return, and a penalty for underpayment of estimated taxes is calculated by TurboTax, it will ask whether you are covered by a disaster declaration, and you can request a waiver of the penalty.

See here for the IRS requirements for the California disasters for 2023.

If you get a notice from the IRS proposing to assess the penalty, see this IRS webpage for guidelines and next steps.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment, or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

See here for the IRS requirements for the California disasters for 2023.

If you get a notice from the IRS proposing to assess the penalty, see this IRS webpage for guidelines and next steps.

See this IRS webpage for more information.

In California, see this webpage for more information from the California Franchise Tax Board. 

[gb3]

Can TurboTax please provide a statement that customers can copy-paste into the Federal and California Franchise Tax Board estimated tax payment penalty waivers? We did not pay the estimated taxes late, so there is no penalty warranted. As you stated, TuboTax still calculated the penalty. But... what you don't address is what we are supposed to write in the waiver. We are not supposed to fill out the waiver at all, for the IRS or the State, because we aren't supposed to be penalized. Please generate a statement that customers can copy-paste into the waivers.