Form 8929 Line 41 is still in error for 2018. When will it be fixed?

[jpat2]

Form 8929 Line 41 is still in error for 2018. When will it be fixed?

A fix for Form 8929 Line 41 was promised months ago, where is it? As you know, IRS Form 8829, Line 41 should be 2.461, as specified in the IRS instructions for this form, not 2.4573 as incorrectly entered by TurboTax Home and Business. This, in turn, yields incorrect results throughout this form and other forms and worksheets. And this error compounds as these miscalculations are brought into any carryovers to next year.

And if that weren't enough, the likelihood of an audit increases with return miscalculations.

So, where's the fix?

[Critter]

Contact TurboTax support and speak directly with a TurboTax support agent concerning this situation.

See this TurboTax support FAQ for a contact link and hours of operation -https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

[jpat2]

Thank you for your effort, Critter, but we've been there and done that to no avail.  Which is unfortunate as the fix is straightforward.

[Anonymous · Accepted solution]

first IRS instructions aren't official.    there was a case of a couple following published IRS instructions in regards to retirement plans.     the instructions were wrong.  The IRS audited taxpayers return.    said sorry but the instructions are wrong.   taxpayers went to court.  court said sorry instructions are wrong and you owe the additional taxes, interest and penalties.    

second.  there are two ways the IRS allows computing depreciation IRS PUB 946 page 34 - using IRS tables.

same publication page 38 - figuring deduction without using the tables (formula method).  FYI some tax programs use one method others use the other.  Some even let you choose. 

TT uses the second method which results 2.4573% = 11.5/12/39.  so the likelihood of TT changing is between 0 and none.   From what I can see in my returns this method has been used for at least 8 years 

third on a $1,000,000 home office the difference in depreciation between the two methods is only $40

do you really think the IRS is going to audit you for this? 

TT uses the same method on other forms where depreciation is computed, such as rental property,   even schedule C

my advise is to leave things as they are , but if you want to use the % in the publication, you'll will have to override forms which means you won't be able to efile and TT accuracy guarantee is voided.

[jpat2]

Well, I try hard to follow the IRS instructions; and it rubs me wrong when someone says that I shouldn't because the instructions are wrong.  And in your example case I can see how those folks may have ultimately had to pay the additional taxes and interest.  But in no way should anyone ever have to pay any penalty for following IRS published instructions because that is just wrong.  And it also begs the question as to how many other IRS published instructions are also wrong.  Then that, in turn, opens a can of worms and begets almost endless possibilities.

But most importantly, HACKITOFF, you gave an unexpectedly good and thorough answer to this question and that is greatly appreciated.  Kudos to you.

[Anonymous]

i'll give you some other facts.   there are various courts that can hear tax cases.    they don't always agree.  so it's possible to win in one court  and lose  in another. usually they can be furthered appealed all the way up to SCOTUS.   With different IRS offices and hence field/office auditors,   a person in one state could get a result that differs from the result that would occur in another state even if all the facts and circumstances are the same.    a common example is reasonable compensation.   since its nowhere defined in the code, it's up to the auditor.    there was a recent case in Illinois where   the owner of a privately held company took a salary which the IRS auditor deemed excessive. the taxpayer went to court where the IRS lost.   

There is a hierarchy for our tax laws, if interested i've provided a link.  https://www.aicpa.org/content/dam/aicpa/interestareas/tax/resources/practicemanagement/downloadabled...

while the is only 1 constitution and 1 internal revenue code,  many things are not defined and there is some wiggle room.  

Congress writes the tax laws but they do a poor job.     what can be on one page in Congress could end up being clarified  in 100's of pages of regulations.