Is it possible to attach "IRC 965 Transition Tax Statement" to a TurboTax return?

[kai-weber79]

With the introduction of Section 965 and recent IRS guidance per https://www.irs.gov/newsroom/questions-and-answers-about-reporting-related-to-section-965-on-2017-ta...

People with Section 965 amounts in their Schedule K-1s are now required to attach a signed form when e-filing and pay the 965 amount separately from the general tax liability. 

Does TurboTax support attaching the required "IRC 965 Transition Tax Statement" to a return when e-filing?

[JohnW15 · Accepted solution]

No, and, unfortunately, you’ll need to paper-file your tax return and attach this statement to your return. 

A person with income under section 965 for his 2017 taxable year is required to include with his return a signed IRC 965 Transition Tax Statement. 

Unfortunately, there’s no way to upload PDF documents that will transmit along with your return.

There are certain instances in which the IRS allows a taxpayer to send in signed documents, such as this statement, with a Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, and eFile the actual return, but no provision has been made for the IRC 965 document as of this date.

[tadlow]

IRS says “pdf the statement and efile”. So this must be a TT thing. Why not efile without it and include it with the 8453? Or, efile and then do amended return with the statement? It is a shame to do 500 pages of paper for a single stmt

[JohnW15]

I agree, it IS a shame to have to print -- GULP -- 500 pages!  But I hadn't seen this question researched before, so I did some legwork.  The 8453 is the most logical place, but the instructions specifically state "If you are required to mail in any documentation not listed on Form 8453, you can’t file the tax return electronically."  (Here, you're not required to mail it in, you just can't efile it with TT, since TT can't do a pdf.)  And there's no IRS guidance other than the link you found during your own research.  Since this is a new tax reporting issue, the IRS most likely will want to see these documents from taxpayers and, if I can be frank, documents that the IRS receives with Form 8453 arent' looked at by IRS folks very closely, anyway.  I wish I had a more satisfactory answer for you.  If you should learn something different in the future, please post back here.  And look back here in the next couple of days, as a TurboTax "SuperUser" may know of a solution of which I'm not aware.

[tadlow]

Thanks for your answer. The conflict is the IRS Q&A specifically says taxpayer can pdf the form and file electronically. However, that means they permit, but if TT can’t support it (not sure anyone can), back to square one. If one were to interpolate, one could argue that since IRS says efile is ok, but the 8453 instructions say only forms listed there, I could still submit that way, since currently there is not another way. I realize that would be my risk, vs filing paper which I detest. Also, since I have extended and won’t file until October, there is hope this somehow gets resolved

[JohnW15]

Right, I'm with ya... I know that some software companies allow pdfs to be filed, but you've probably already made an investment of money in the TT program, and of your own time, which is certainly valuable.  If a SuperUser posts a solution here, you should be notified.  (SuperUsers are often retired CPAs who post answers to questions, and they like tackling tough procedural issues.)  I think you and I are both suggesting that the IRS should have a solution via the 8453.  Again, I wish I had a good answer for you...

[tadlow]

I also read in another exchange about another form TT does not suppport, I think was 8865, that nothing to prevent simply fixing efile (if TT accepts) and then mailing in that particular form. So I’ll also think about that option. Meanwhile, this is really an October issue for me so plenty of time for IRS to guide me

[tyliui]

If we filed extension, which voucher to use to pay the Sec 965 tax separately as IRS instructed? In IRS Q&A, it mentioned 1040-V but if 1040 is not filed (due to extension), can I still use 1040-V or just send in a check (to Form 4868 or 1040 address?)? Or do a wire transfer from IRS Q&A with the 09659 code IRS provided?

[tadlow]

I read the Q&A to say that you must first calculate your tax with and without the 965, the difference being the 965 tax. Then, you must remit the 965 tax via wire transfer. I read it as required, and due by due date, regardless of if you file extension. That is my plan.

[tyliui]

I was thinking wire transfer as well. What do you put in the "Tax Month/Quarter" in the wire transfer form (as part of the worksheet/beneficiary)? I get the other part (SSN, Name control, Tax year, 09650 payment type) but not sure about what to put in the Tax Month/Quarter.

[tadlow]

to be clear, I now see they will accept a check, but only if you aren't already required to pay electronically. If you are, then they require a wire. If using a wire, I would use the pmt mo of 12

[macuser_22]

The 8453 transmittable does not support such a statement. It only supports the forms that it has a check box for. https://www.irs.gov/pub/irs-pdf/f8453.pdf The IRS says the Section 965 statement must be submitted *with* the tax return. Such a statement must be attached to a mailed tax return if using TurboTax since attachments are not supported.

[cbeelfamily]

If you cannot e-file for federal because of this stmt then can you still e-file for NY?  NY state requires e-filing.

[macuser_22]

No you cannot e-file a state return unless the Federal return was already e-filed and accepted.  NY does not required a e-filed return if the e-file provider does not support it and in this case it does not.