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Level 2
May 22, 2026
New

Allow e-filing for Maryland returns with late payment penalties

Related products:Lacerte
  • May 22, 2026
  • 3 replies
  • 10 views

When I try to submit an extended MD return that has a balance due, Lacerte gives a Critical Diagnostic Warning that MD does not allow Late Payment Penalties with an e-filed return - ref #3410.  This is not correct.  I have personally spoken to a representative from MD and was told that MD does accept e-filed returns that include late payment penalties.  Additionally, I previously used Drake tax software and was able/allowed to e-file a MD return that included late payment penalties.

This is not a new issue.  I previously used Lacerte for 19 years (before trying Drake) and had the same diagnostics.

Lacerte, please correct this issue.  I don't like have my clients paper file their MD returns when they should be able to e-file or have them receive MD penalties due notices.  Don't let Drake be better at filing than Lacerte.

Tim 

Lacerte user for more than 20 years

3 replies

sjrcpa
Level 15
May 22, 2026

Hint- give client the return with the penalty. Remove it before efiling. Put it back after efiling.

But yes Lacerte should allow this if MD does.

The more I know the more I don’t know.
CPATIMAuthor
Level 2
May 22, 2026

SJR - I have tried that.  However, when MD electronically withdraws the balance due, it only takes the lower amount.  The client will still receive a notice.  Then I have to try to explain to my client what happened.

Come on Lacerte/Intuit, join the 21st Century.

Does this issue occur in the other Intuit tax software programs?

sjrcpa
Level 15
May 22, 2026

With my workaround I have the client send a check or pay online.

The more I know the more I don’t know.