CCH E-file Problems 9/15: Penalty Waiver Available for AL Returns Affected

September 18, 2020 Alabama Department of Revenue Tax

Tax practitioners who use two CCH return preparation products reported problems with corrupted files and an inability to e-file returns on Sept. 15, resulting in tax returns that were not filed on time. Due to technical problems with CCH’s e-filing system, users were unable to get their returns into the e-file queue for much of the day on Sept. 15. In addition, some practitioners report that when they opened previously saved returns to file them, in many cases the returns were corrupted.

Under Ala. Code 1975, Section 40-2A-11, the Department is authorized to waive late filing penalties for reasonable cause. This would cover the situation described in the article where a taxpayer was unable to meet a September 15 filing deadline due to technical problems with CCH’s e-filing system on that date. The Alabama Department of Revenue will work on a case-by-case basis with any taxpayer who was unable to timely file returns due to these technical issues. Taxpayers may submit a penalty waiver request using the Department’s Form PWR, which can be accessed on the Department’s website at https://revenue.alabama.gov/wp-content/uploads/2020/09/fpwr0920.pdf. Taxpayers may submit the form to the Department’s Income Tax Administration Division at the address on the form.

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