Include Underpayment, Late Payment Interest and Penalties
Select the applicable option in the Include Underpayment of Estimated Tax Penalty in Hypothetical Calculation field to include the underpayment of estimated tax penalty from the actual return in the hypothetical column for equalization calculation. This field applies to the hypothetical federal return and all hypothetical state returns.
Select the applicable option in the Include Late Payment Interest and Penalties in Hypothetical Calculation field to include the late payment interest and penalties from the actual return in the hypothetical column for equalization calculation. This field applies to the hypothetical federal return and all hypothetical state returns.
When these fields are blank, none of the actual penalties and late payment interest are included in the hypothetical calculation.