If you rename the Portfolio Item type Feature to a different value, then Labels from Jira are not applied to Rally Tags in the corresponding work item
Steps to Reproduce:
In Rally, rename Feature to Epic
Create a set of matching tags in Jira and Rally
In ConnectALL, create an automation between Rally and Jira.
Map Jira Epic to the newly renamed Rally Epic -- you will need to set the alias to PortfolioItem/Epic on the Rally side
In the field mappings, include Tags from Rally and Labels from Jira along with the minimum fields for a valid automation
Create a new Epic in Jira and add the tag created in step 2
DE80433
This is targeted for a fix in v3.4