You are correct that if you state that you have a 3520 and have filled out some information relating to it, TurboTax apparently will not let you e-file. This is on the enhancement list.
Please tell us, have you to tried deleting the references to the 3520 and e-filing? Of course, if anything you are reporting on the 3520 has an effect on your 1040, you will need to enter that separately.
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