I'm in the same boat; however, I am going to hold off rather than file paper. If you go to the link that was posted regarding known issues and click on the one and only line for 2022, you will download a Macro-enabled Excel spreadsheet. Filter column B using 8960.
Business Rules F8960-019-04 and F8960-003 may cause returns to erroneously reject. These business rules need to be modified to reflect the updates to the Instructions for Form 8960 (Tax Year 2022) regarding the Specific Instructions for Line 4a to include Schedule C (Form 1040) amounts reported on Schedule 1 (Form 1040), line 3 and Form 1041, line 3.
It also states, which I wanted to confirm, that the Projected Resolution Date is February 5th. It was logged by the IRS on January 17th. This effects every schedule C filer so I would hope this is a priority for them.
The IRS' website gives the following information regarding paper vs electronic filing.
If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in less than three weeks, even faster when you choose direct deposit.
Let's say the IRS fixes it later than projections; like 10 days late. That's two weeks plus an assumed three weeks (says in less than) you will wait for it to be processed and deposited in your account. Five weeks.
Paper file and you are looking at six to eight week once they get it. What I would hope is a worst-case e-filing timeline vs the best-case paper filing is 7-10 days earlier.
In the meantime, my suggestion to all is send your senators and your representative a note demanding that the IRS immediately address the know error in e-filing business logic for form 8960. Anyone who earned money from work done outside of a W-2 (contractor, side-hustle, etc.) will be prohibited from e-filing until this is resolved.
