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1120 e-file errors

E-file diagnostic: Form 2220, Page 2: A default interest rate is used

Form 2220, Page 2: A default interest rate is used on line 28. Interest rates must be updated to calculate the correct 2220 underpayment penalty. These rates are issued quarterly by the IRS.
This happens when you don't have interest rate information required by the state for e-filing.

Solution 1

This is a severe diagnostic and won’t keep the return from qualifying for e-filing.
While the IRS updates interest rates quarterly, the interest rates are not necessarily updated quarterly in the software. Therefore, you need to make sure the rates are current with what is in section 6621.

Solution 2

Enter rates:
  1. In
    Organizer
    , go to the
    Estimates and Penalties
     folder.
  2. Select
    Underpayment of Estimates
    , then the
    Penalties/Interest
     tab
  3. In the
    Underpayment Interest Rates (Overrides)
     section, enter
    Rates
    . Rates are not updated quarterly in software.
  4. Do a full recompute and recreate the E-.

Solution 3

Suppress the compute option diagnostics.
  1. In
    Organizer
    , go to the
    Estimates and Penalties
     folder.
  2. Select
    Underpayment of Estimates
    , then the
    2220 Penalty
     tab.
  3. In the
    Compute Options
     section, select
    Suppress the compute option diagnostics
    .
  4. Do a full recompute and recreate the e-file.

Solution 4

  1. Go to
    Organizer
    ,
    Estimates and Penalties
     folder.
  2. Select
    Underpayment of Estimates
    , then the
    2220 Penalty
     tab.
  3. In the
    Underpayment Penalty Compute and Print Option
     section, use the dropdown to select
    Option 2
     or
    Option 4
     to prevent the 2220 from being included in the e-file.
  4. Do a full recompute and recreate the e-file.

This article applies to:

  • PRODUCT: GoSystem Tax RS
  • Return type: 1120 Corporation
  • State: Alabama,Arizona,California,Idaho,Illinois,Indiana,Kentucky,Maine,Minnesota,Montana,Nebraska,New Jersey,New Mexico,North Carolina,Ohio,Oklahoma,Pennsylvania,South Carolina,Texas,Utah,Virginia,West Virginia
  • Subject: e-file
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