Why hasn't TurboTax said anything about the extension for California in multiple counties due to emergency relief in any of their messages or updates?

[roundhouse_c]

We have been told separately we don't have to file until Oct. 16th yet TurboTax still tells anyone in the counties affected it's still due April 18th.  It should be updated based on the addresses we list for our returns.

[MichelleLO]

Please see the below TurboTax blog article for information on utilizing the California Disaster Relief. 

IRS Provides Tax Relief for California Storm Victims

[roundhouse_c]

Thanks for posting but my point was that we shouldn't have to find a separate answer in the community forum to get help on this.  It should be part of the software updates so we aren't constantly being told erroneously the deadline is April 15th/18th.  According to your post, we wouldn't have to file for an extension, it's already given.  So the software to finish our returns makes it confusing and possibly an issue with a bunch of people filing for extensions and adding paperwork they don't need to do.

[john doe3]

+1 for the comment above. Turbo tax should update the software to give this information proactively

[dlilga]

I agree with the above comments.  I filed on April 18th, with TurboTax saying it was "100% Correct", then got a terse letter and a refund check from the IRS saying that if I had filed online I wouldn't have made an error in the amount of penalty due.  TurboTax blew it!

[Critter-3]

The program estimates an underpayment penalty based on the info you entered in the program and the IRS/state calculates the underpayment penalty based on the info they have so the amounts may not be the same.   The fed/state can also bill you for a failure to file & failure to pay penalties plus interest on the outstanding balance due and these are nothing the TT program has any control over. 

[roundhouse_c]

Huh, your answer has nothing to do with the problem.  If you are from the TT programming division you have a liability on your hands.  This question is about something that was unilaterally decided for anyone within certain counties in California.  There should be no added penalties for filing within the extended filing period already allowed without applying for an extension.  The program should be updated to explain that we are not filing late from certain counties.  That isn't hard to do.

[Critter-3]

The TT program has never been adjusted for local changes like the filing deadline extensions and it never has been and probagly never will be... so the user has 2 options ... either override the program estimated payment or wait for the state to refund any excess penalties.  

[roundhouse_c]

Okay, this isn't the point, but if that causes overcharges, they have a potential lawsuit on their hands.  I'm sure there's an opportunistic lawyer out there eager to jump on something like this.

[Critter-3]

I would not hold my breath as they only guarantee the tax is calculated correctly which does not include the estimated penalty.  And almost every year some part of the country get extra time to file ... it is too expensive for the program to be adjusted for a few filers.  

[roundhouse_c]

It's not a few filers . . it's more like several million.  And yes, I think they should make the adjustment every year.  They make plenty of revisions in the program with their updates each year.  This isn't that much of a stretch.  Their radio silence to the users is part of the issue with how this is being handled.

[DoninGA]

TurboTax does not and cannot calculate any tax return filing late or late payment penalties on a tax return.

The Underpayment of Estimated Tax by Individuals Penalty is based on the amount of tax payments made during the tax year and the timeliness of the payments made for the current tax year.

It has nothing to do with when the tax return filed or when a payment for taxes owed is paid.

IRS website - https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty

 

[roundhouse_c]

So the person that posted earlier that they got a refund for a penalty included via TT is lying?

[Critter-3]

@DoninGA  makes a good point ... the underpayment penalty for estimated tax payments is always calculated to the filing deadline of 4/18  and the IRS/state can add more underpayment penalties  +  late filing penalties + late payment penalties + interest on all of those.  The extended filing deadline for some doesn't affect the underpayment penalty estimate the program calculates.  The program DOES  post the deadline of 4/18 for everyone ... it will not tailor the late filing warning for those with extended filing deadlines.   I am sorry if you don't know if there is a filing extension deadline for your area but you cannot expect the TT program to be the messenger.  

[DoninGA]

@roundhouse_c Refund of the underpayment of estimated tax penalty?  Sure that happens all the time.  The IRS also adds or adjusts penalties what was calculated by the TurboTax program for the underpayment tax penalty.

Has nothing to do with when the tax return was filed or when the taxes owed were paid.