How to resolve ProConnect Tax diagnostic ref. 7520

This article will help you resolve ProConnect Tax 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 in the Penalties & Interest (2220) screen.

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:
  1. Print the client letter and client copy of the return.
  2. From the Input Return tab, go to Payments, Penalties & Extensions ⮕ Penalties & Interest (2220).
  3. Go to the Late Return Pen. & Int. tab at the top of the page.
  4. Remove the 1= Automatic from Lines Late filing, or Late payment.

Once the diagnostic has cleared, the return can be e-filed.