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article imageTurboTax System Fails During Busiest Tax Day Of Year

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By malan     Apr 18, 2007 in Business
Last minute tax filers overload TurboTax's system which slowed almost to a halt. IRS forced to extend the filing deadline 2 days for e-filers whose information did not make it through by midnight.
Last night, an ocean of last minute e-filers trying to get their taxes filed by the deadline brought down the most popular tax filing website on the internet, TurboTax.com. The system buckled as millions upon millions of procrasitanors sent in filings at the exact same time. During peak times 50 to 60 filings were going through per second, which is more than a handful for any network.
Technically, the system just got really, really slow, but it may result in penalties for people whose filings came in after midnight. For a company that's positioned itself as the leader in electronic filing, this is a pretty bad glitch, and if customers do end up owing penalties, you can be sure that the company's reputation will take a pretty big hit.
No one is positive exactly what happened, if the network swamping was a lack of planning on TurboTax's part and they just didn't expect that many people to show up or if something actually malfunctioned in the middle of their busiest day of the year. The system is virtually untouched the rest of the year.
People affected by the massive network slowdown have been given an extension and will not be forced to pay penalties.
"We have worked with the IRS this morning to ensure that returns will be considered as timely filed. Intuit customers using TurboTax software to electronically file their U.S. federal income taxes won't be penalized so long as they file their returns by midnight, April 19th."
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