Contacted TurboTax by phone.
The lady agreed this is a new issue and asked me to file the returns by postal mail.
Looks like we would never be able to e-File again because of this new validation by TurboTax.
Hope TurboTax will fix this, since foreign bank can never have a "Federal ID" number, which are used to identify Banks in USA only.
Also, since if the IRS can accept the returns by postal mail, they should not have issue when we do the same by e-filing. So this definitely looks more like a TurboTax issue rather than an IRS requirement.
Or simply TurboTax should give a new option where we can add Foreign Bank interest income.
