Looking to see if anyone else has run into this error.  I have a client with a large income and liability for California.  The taxpayer made limited estimated tax payments and had California state withholdings.  Upon reviewing the CA Form 5805, page 5, part II (Figure the Penalty), lines 10 and 11 column B for the second quarter are blank!  If I remove all California state withholdings and move the proportionate amount to the first, second, and fourth quarters, so that the cumulative amounts paid in are exactly the same for each quarter.  Suddenly lines 10 and 11 column B are now completed and the computed underpayment penalty increases by $1,300.  I have been speaking with Lacrete literally all day and they have been unable to explain what is going on.  I'm concerned that I have stumbled across a glitch in the program.

As a test, I created a new test client and the only input was $3,000,000 in wages and a very small amount of estimated tax payments for first, second, and fourth quarter.  The CA underpayment penalty is approximately $8,000.  If I then add $10 of CA withholdings, the penalty drops to $4,900.  There has to be something wrong here or am I totally missing something simple?