Does turbo tax software for 2024 fail to recognize that residents of some counties in California were granted extensions of time to file and pay?

[redbullcaddy]

I received a penalty notice for failure to timely file and pay estimated taxes. Due to the fires, residents of Los Angeles County were granted disaster relief in the form of an extension of time within which to file and pay their taxes to October 15, 2025. I filed and paid before the due date. Also, turbo tax erroneously prepared and attached FTB5805 Underpayment of Estimated Tax by Individuals to my return.

[fanfare]

If you have an extension of time to file, just pay what you owe, minus any penalty.

You  won't be billed.

IRS uses your zipcode to determine the extension.

@redbullcaddy 

[redbullcaddy]

It was the California Franchise Tax Board, not the IRS, that assessed the penalty.  The penalty was assessed after I filed.  The IRS advises you to write "Los Angeles County Fires" on the top of the first page of your return if you are mailing the return. Are these returns being similarly flagged as entitled to the automatic extension to October 15, 2025 to file and pay if filed electronically with Turbo Tax? 

[SusanY1]

Files are flagged when filed electronically, but on the receiving end in most cases.  

California Franchise Tax Board typically handles the exceptions the same way that the IRS does, by use of zip codes.

Many taxpayers used temporary addresses when filing due to temporary relocation from the fire.  This would cause the system to charge penalties erroneously.  Other times, systems make mistakes. 

Generally, these things are automatically handled on the receiving end (IRS or CA FTB).  A call or message via the CAFTB portal should help resolve the issue quickly.

 

[Opus 17]

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@redbullcaddy wrote:

It was the California Franchise Tax Board, not the IRS, that assessed the penalty.  The penalty was assessed after I filed.  The IRS advises you to write "Los Angeles County Fires" on the top of the first page of your return if you are mailing the return. Are these returns being similarly flagged as entitled to the automatic extension to October 15, 2025 to file and pay if filed electronically with Turbo Tax? 

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You're asking the wrong question to the wrong people.  Anything the IRS tells you to do, and any benefit the IRS extends (like an extended deadline) is not automatically passed on to the state or binding on the state.  You would have to make sure the FTB also offered an extension (maybe they did, maybe they didn't, I don't live in CA).  You would have to check the FTB rules to see if there was any special procedure you were supposed to follow, and you need to call the FTB to straighten this out.