How to resolve Lacerte diagnostic ref. 7520

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

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