E-File was rejected because of "duplicate" 1099-R forms.

[MarcEB]

Just got notice my return was accepted after adding a penny.

[Clubnev]

It worked for me. 

[Clubnev]

Adding a penny to the taxable 1099R worked for me. 

[Clubnev]

I added 1 cent to the taxable 1099R and left the IRA 1099R alone. The 2 1099’s were identical except for the reason codes. One 1099R had a “Normal distribution” reason code and the other had a “rollover” reason code. 

[danieljameseaton]

Same issue for me.  I'm going to wait another week to see if it gets resolved, so I don't have to resort to the penny solution.

I don't buy that Turbotax doesn't report sub-dollar amounts to the IRS -- this wouldn't bypass the issue if that was the case.  The PDF version of the return Turbotax "files" shows rounded amounts, but I expect it's submitting unrounded amounts in the electronic format.

Is the penny hack the official Turbotax recommendation?  

[macuser_22]

The IRS requires all dollar amounts to be rounded to the nearest dollar ($49 or less is ignored - $.50 or more adds one dollar.)    That is an IRS e-file requirement specified in the e-file requirements.  The IRS e-file schemas do not have a "cents" field - only whole dollars.

In my opinion the reject is internal to TurboTax.  Any IRS reject has a reject code and I know of no IRS code for  duplicate forms.

[Sooz]

@macuser_22  The more I think about it, the more I think you’re right (that it’s a TT problem), even though the message you get says rejected by IRS, it originated from TT.  Hmmmmmm....

Somehow I doubt that when the brokers send the same exact 1099-R info to the IRS, that it was rejected with duplicates. Which if true, It points back to TT. 

Yes, on the returns all amounts are whole dollars. But when you print supporting forms & worksheets (and edit them online) they accept and reflect dollars and cents. Which means TT has it stored internally that way. And supports why adding a penny forces a unique value. 

They apparently don’t test very thoroughly or they’d have caught it. And it looks like perhaps the ONLY thing on the form that makes it unique is the gross distribution amount and the fact that it’s part of your tax return. If you ask me, that’s grossly inadequate (and a poor assumption it won’t happen) and yet very fixable. As a retired IT project manager who lived and breathed system integration for 20+ years, this drives me nuts!!

i hope they fix it soon,  and that in the future they do a better job of testing before they apply any updates.

[ngozman]

I am sure it is TT issue. I my case two 1099-R with the same amount came from different brokers for different payees ( myself and my wife).  I think that when TT builds file to send to IRS they leave all fields in 1099-R records blank except for amounts. If not blanks but some other the same values. This is why they look as duplicates for IRS computer. 

When I spoke to TT customer service I asked to speak to one of their technical people to check on the file they build for IRS. No one was available. I myself used to work for brokerage company before I retired and I am familiar with the ways brokers build files for IRS and other third parties. 

[mrcool202]

I just received the dreaded "Tax Return was Rejected" email.  The reason for the rejection was "duplicated 1099-R".  My wife and I both had the exact same distribution amount from each of our IRA's from the same institution.  My ASSUMPTION is that the IRS system checks are only looking for duplicates using FEIN + dollar amount.  I am GUESSING that the IRS does not look at SSN, Name, or other fields for duplicates.  I added .01 (1 penny) to the distribution and taxable distribution amount (Box 1 and Box 2) of the suspect "duplicate" 1099-R".  I resubmitted the e-filed return and 15 minutes later received the blessed "e-file accepted" email.

[Ben7795]

My wife and I have a 1099-r from a long term care insurer that is in the same amount.  The fee is not taxable as it is paid to the insurer. the tax ID used was mine and my wife and the return was rejected twice.  How do I fix it?

[Ben7795]

No reason code proved by turbotax

[Clubnev]

For most of us, including myself, add one cent to one of the 1099’s and resubmit. This isn’t an official solution but it’s worked for most of us. 

[BGScott]

My two cents:

Adding a penny to one of our same-payer-same-amount-two-persons "duplicates" worked for IRS acceptance, but TTax (using CD version) still tags it "needs revision." 

INTUIT THIS NEEDS TO BE  REMEDIATED.

And BTW, FIX THE LANGUAGE that describes "Backdoor" high-AGI traditional to Roth conversions because your semantics are so odd that I have to spend an hour every year making sure again that I'm choosing the right  labels.  Just add a phrase like "if you did a "backdoor Roth, choose this."

B

[macuser_22]

---

@BGScott wrote:

And BTW, FIX THE LANGUAGE that describes "Backdoor" high-AGI traditional to Roth conversions because your semantics are so odd that I have to spend an hour every year making sure again that I'm choosing the right  labels.  Just add a phrase like "if you did a "backdoor Roth, choose this."

---

I do not see any discussion of the so-called "backdoor Roth" in this thread.    The backdoor Roth does not exist in tax law - it is simply two transactions 1) making a non-deductible Traditional IRA contribution, and 2) converting the Traditional IRA to a Roth.

Both must be entered in the proper section of the program.

For A backdoor Roth to work, you must have no Traditional IRA balance in any account when you start and have no year end balance when done otherwise it will be taxable.

[Jarjar]

Findings Update Summary:

It appears the IRS/TT E-File validation has an issue with 1099-Rs of the same value, even though the payee or account number is different.  The actual form 8606 that is generated from the 1099-R is correct in the PDF file.  A possible method to continue with E-filing (I do not give tax advice) is to save the file being rejected as a PDF (and print a copy), then add a penny ($0.01) to one of the 1099-R entries that have the same value, then re-Efile.  Since the actual Tax Return uses rounded numbers the Tax Return, itself is accurate. The PDF contains the accurate underlying form if the IRS, later, needs a copy.

Same issue.  two of 5 1099-R entries for different persons had the same value.  The entries are correct, but for some reason the information TurboTax is presenting to the IRS does not include the unique fields for different persons.  Noting the other 0.01 successes, I was thinking I'll add 0.01 to one of them and subtract 0.01 from the other.  That way the total income is still correct.(decided later not to subtract a penny from one)..  I resubmitted with no changes, the first time...awaiting results. 

UPDATE:  It was rejected, again, for duplicate 1099-R without making changes.  I decided to just change one to add 0.01, since a following entry asks how much you redeposited and I did not want to under report the other even by 0.01. 

Would you believe that TT on FB denies this is happening????? 

While typing this update, Within 15 minutes of refiling with 0.01 added, just got the ACCEPTED Email!  So much for TT's 100% accuracy guarantee.