Returns with pre-computed penalties and interest cannot be filed electronically. You must file this return as a conventional paper return.

If the Late Penalty and Interest input fields on Screen 11 have 1's entered to trigger the automatic calculation of penalties and interest, this e-file critical diagnostic generates.

To show the estimated penalties on the Form 1120, you must paper file this return.

To have the estimated penalties show in the client letter so they will know to pay the amounts and still be able to e-file:

1. Print the client letter and client copy of the return.
2. Then go to Screen 11, Penalties & Interest (2220).
3. Click the Late Penalty and Interest section on the left.
4. Remove the 1 = Automatic from the lines:
   • Interest
   • Late filing
   • Late payment

Now the e-file critical diagnostic will be removed from the return and it can be e-filed.