NYC 221 TP Underpayment Penalty

[TaxGuy2050]

Hi,

I am trying to file a Form NYC 202 return but it keeps generating a penalty for underpayment of estimated tax. I should be exempt from any underpayment penalty because of exception 1. Last year (2022) there was zero tax. However, when I input 0 in the software, nothing shows up on NYC 221 and the underpayment penalty still generates. I tried a few other inputs in the software but still to no avail.

Is there any way to override the software? Or is there an input that I am missing?

Thank You.

[sjrcpa · Accepted solution]

-1 is the input for zero in Lacerte and ProConnect.

Did they actually file a 2022 return and have -0- tax?

Or do you want to use zero because they did not file a NY return at all?

[TaxGuy2050]

Thank you that worked.

Did they actually file a 2022 return and have -0- tax? Yes, I have been filing with zeroes because I knew there would be income eventually and I wanted to harvest prior year NOLs.