I scheduled electronic payment for the client with submission of the return (having to remove penalty calculations in order to e-file).  He knows to expect a bill from AZ DOR.

I guess this is really more of a question/complaint to make to Lacerte, but I just wanted to see if any other preparers have received an explanation from Lacerte as to why this is even an issue.  The critical diagnostic states that AZ doesn't allow e-file in such cases, but from what I've researched online, I have found nothing from AZ DOR which states that e-filing is not allowed when penalties are included on the return.  And if that's true, then I would like to know why Lacerte has this problem.  I haven't come across this with any other states over many years, just Arizona returns.