I have been using TurboTax Home and business for over 25 years. I have a consulting business and therefore do not have beginning or ending inventory. My Federal return was rejected for incorrect end of year inventory. It should be zero or blank.
In Business Income and Expenses on the "Do you have inventory to report?" page. There are two questions with radio buttons,
O Yes, I have inventory to report.
O No, I don't have inventory to report.
The first choice was pre-selected when I first went to this page. I clicked the second choice and then hit "Continue." Normally when I am reviewing my return and return to a page that I have completed, my selections are already shown as I had left them. In this case, when I returned to this page, the " Yes, I have inventory to report." button was always pre-selected. This is very unusual.
This was the first time in my more than 25 years of using Turbo Tax that my Federal return was rejected. I tried selecting the "No inventory to report: option the first time that my return was rejected. This did not fix the problem. Then I created an inventory of $1 at the end of the year. This did not fix the problem. Each time the return was rejected, I reviewed it and re-submitted. I switched from "Step By Step" to "Forms" and reviewed each form. I found several check boxes and checked those, hoping that this was the problem. It did not. I made 7 submittals yesterday and each time, my Federal return was rejected.
I have now given up and printed my 70+ page return and submitted it via mail at the USPS. I do not remember the last time that I filed a US tax return via paper. I used electronic transmission right from the start. I dropped off the returns at the post office this afternoon. It was 2:00 PM and there were no line.
I spent over 4 hours yesterday trying to submit, getting rejected, reviewing and re-submitting my return. As I said, my return was rejected 7 times yesterday.
Before, the TurboTax review step always picked up multiple items which needed correction. This is most likely why I never had a return rejected before. This time, the review process picked up nothing to correct. Perhaps this is the cause of the problems I had with submittals. At the very least, the review process is missing some error that the IRS picked up. I have not idea what the actual cause of the rejections were.
