This article will help you resolve Lacerte diagnostic ref. 7520 which states:
- Returns with penalties and interest cannot be filed electronically. You must file this return as a conventional paper return.
The message is triggered if 1's are entered in the Late Penalty and Interest input fields on screen 11.
To resolve this diagnostic
- To show the estimated penalties on Form 1120, you must paper file the return.
- To show the estimated penalties in the client letter so your client is notified of amounts to be paid and can still e-file:
- Print the client letter and client copy of the return.
- Go to Screen 11, Penalties & Interest (2220).
- Click the Late Return Penalty and Interest section on the left.
- Remove the 1= Automatic from Lines Interest, Late filing, or Late payment.
Once the diagnostic has cleared, the return can be e-filed.