TY 2020 ReasonableCauseExplanation
Taxpayer paper filed its 2020 Form 990 for the fiscal year ended June 30, 2021 on May 13,2022. Taxpayer properly filed an extension and mailed the return certified receipt. Taxpayer historically filed its Form 990 electronically using Lacerte tax software, a division of Intuit. We were unable to qualify the return for electronic filing. Lacerte is a 32 bit software program. 32 bit programs are unable to process a field with a value exceeding 2,147,483,647. Taxpayer's total assets were 2,570,183,256. This software issue was discovered in May 2022 and we did not have ample time to select a new software provider and timely file the return. Therefore, we decided to submit a paper copy and included Form 8948, Preparer Explanation for Not Filing Electronically. The paper copy was returned to us in late December 2022. We have found a new software provider that is able to meet our needs, CCH Tax Axcess. Therefore, we are now submitting the return electronically. We respectfully request abatement of any associated penalties and interest as we purchased new software to fix the issue and tried to correct the failure as quickly as possible. Taxpayer has a history of good compliance and timely filing. This was the first time we encountered a tax software limitation with our former software provider and have therefore changed software providers. Additionally, taxpayer requests penalty abatement under IRS Notice 2022-36 and IRS release IR-2022-185:Taxpayer requests relief from certain failure to file penalties with respect to tax year 2020 that are filed on or before February 15, 2023. The notice provides that penalties will be automatically abated.