I think as long you remove the number of Form 3520 from Part IV of Form 8938, TurboTax will allow you to e-file. However, there is a check mark on Form 3520 to indicate whether you filed Form 8938. In other words, these two forms talk to each other, so I personally will not risk an inconsistent filing which could increase my audit risk. I will paper file my federal return to make sure it is correct and consistent. However, I will remove the number to trig the system to allow me to e-file my state return as Form 8938 is not reqired to be attached to my state.
