Last-Minute Payers Using Intuit Software Swamp e-filing Servers

The Internal Revenue Service said Wednesday it would not impose late fees for users of the popular TurboTax and ProSeries software who missed the tax-filing deadline because Intuit Inc.'s servers became overwhelmed by a flood of last-minute returns.

A record number of returns from individual taxpayers and accountants caused delays Tuesday in customers receiving online confirmation their tax returns were submitted successfully, said Harry Pforzheimer, a spokesman for the Mountain View-based company that makes the software. In some cases the delays caused taxpayers to miss the midnight deadline.

IRS spokesman Bruce Friedland said filers who encountered delays
with Intuit's servers will not be penalized if their returns rolled in late. The reprieve also extends to people who tried to file Tuesday night but could not.

Penalties for late filing start at 5 percent of the unpaid taxes per month, and max out at a total of 25 percent.

"They will not be penalized for filing late," Friedland said. "We will do everything we can to assist taxpayers affected by the situation. If people couldn't e-file last night, we encourage them to file as soon as they can. We encourage people to continue using e-file."

(Copyright 2007 by The Associated Press. All Rights Reserved.)