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TurboTax Suffers Meltdown, IRS Extends Deadline

April 19, 2007

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Taxpayers who were unable to e-file their tax returns Tuesday using Intuit Inc. software products have until midnight on Thursday, April 19, to file their returns, the Internal Revenue Service said.

Potentially up to several hundred thousand last-minute tax filers were affected by company server problems on Tuesday evening, preventing them or their accountants from electronically filing returns. Intuit confirmed Wednesday that those problems had been resolved, and it was successfully accepting e-file returns on Wednesday.

The company said affected taxpayers and tax professionals include those using "TurboTax," "ProSeries," "Lacerte" and Intuit's Free File offering,"TurboTax Freedom."

Intuit product users who were unable to file their returns through the company's servers Tuesday should e-file as soon as possible. The IRS said will not apply late filing penalties to taxpayers who were affected by this problem.

Overall, the IRS reports a strong year for e-filing. Taxpayers filed more than 75 million returns electronically through April 17, shattering last year's record of 73.2 million.

E-file and Free File will remain available through Oct. 15, 2007, to taxpayers who have requested a six-month filing extension.

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