Form 8960 error saga

Forum|Forum|3 years ago
February 11, 2023
16 replies
143 views

Just noticed TT is claiming a 2/19/23 fix date.

I'm wondering: is this based on something TT knows from the IRS or is this just a guess?

...

What needs to be done:

This return cannot be electronically filed due to a processing error on Form 8960, Net Investment Income Tax. This issue will be resolved on February 19, 2023. On or after this resolution date you may resubmit this return for electronic filing."

TurboTax Self Employed Online

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east44dh

Level 2

My tax forms were finally accepted on February 20th - however as of March 8th I have not received my refund. I checked the IRS website, and it shows my tax forms are being processed but have not yet been approved. I am thinking there still is a problem with the IRS form 8960. Has anyone who had to file form 8960 (even though you did not have any investment income like me) gotten a refund?

DaveMoe

Level 2

I filed with form 8960 and I have received both my state and IRS refunds.

jhturner71

Level 4

It’s official, 22 days since my return. Accepted on Feb 19. Got state refund on 2/27. 22 days and federal refund still not approved. Accepted but no approved. Wonder how many are struggling with this. Never had this issue before.

CarissaM

Level 15

The 21-day timing is approximate, it can take longer depending on your situation. Please keep an eye on the Where's My Refund tool for updates on your refund. @jhturner71

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jhturner71

Level 4

***UPDATE**** (I just got my refund approved on 3/18. Filed 2/19. The refund listed is higher than Turbo Tax refund listed by the exact amount that Turbo Tax said I owed on Form 8960)

Rejected on 2/17. Filed on 2/19 and accepted. Now 28 days and refund not approved. I followed the link posted with IRS updates to this open problem and there is a new date posted on estimated fix date of 3/19/23. So I created my IRS.gov account and pulled my transcript. The transcript lists what I entered in TT and what the IRS computer has. Mine matched up perfectly with every single number except one thing. You guessed it, from 8960. Turbo Tax has me owing (number for example $100) on my 8960 form and the refund Turbo Tax has is exactly that $100 less than Federal computer So Fed says I should get $100 more than Turbo Tax. That discrepancy is probably the delay. Now the Fed transcript is weird. There is a line on the last page on the 8960 transcript that says total investment income and it shows what turbo tax entered and it’s a positive number and correct. Then below that it says the Fed computer is a negative number for total investment income. So Turbo tax has my owing that $100 and Federal computer does not. So federal computer says I’m owed $100 more.

So this business that the IRS is just behind and have so many to process is not true. Form 8960 saga is not fixed yet.

the Fed still says there is an issue with an estimated fix date of 3/19. So either the IRS has the 8960 glitch issue wrong. Or Turbo Tax is wrong. Because my refund discrepancy all come down to that single 8960 number discrepancy.

donmetz9989

Level 2

The fix date is 3/19 and the issue is still open according to the IRS. Will they still count the failed attempted filings due to their error?

2/7/2023

Form 8960

Business Rules

Business Rules F8960-019-04 and F8960-003 were causing returns to erroneously reject and were disabled on 2/19/2023 in efile1040x_2022v5.2 Rules Sets. This was due to the rules not reflecting 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.

Business Rules F8960-019-05 and F8960-003-01 were created with an implementation date of 2/19/2023. The updated business rules will be in change pages that will be available via the Secure Object Repository (SOR) in early to mid-March 2023.

Rule Number: F8960-003-01 Rule Text: If Form 8960, 'NetRentalIncomeOrLossAmt' has a non-zero value, then it must be equal to the sum of Form 1041, 'NetProfitOrLossAmt' and 'NetRentalIncomeOrLossAmt'.

Rule Number: F8960-019-05 Rule Text: If Form 8960, 'NetRentalIncomeOrLossAmt' has a non-zero value, then it must be equal to sum of Schedule 1 (Form 1040), 'BusinessIncomeLossAmt' and 'RentalRealEstateIncomeLossAmt' unless all of the following conditions are true: 1) Filing status of the return is Married filing jointly or Qualifying widow(er) and 2) Form 8960, checkboxes 'Section6013gInd' and 'Section6013hInd' are not checked and 3) Form 8960, 'FilingThresholdAmt' equals 125000.

3/19/2023

OPEN

CarissaM

Level 15

In order to receive an update, it would be best to click here and give us a call. @tiredoftaxes2023

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tiredoftaxes2023

Level 2

I requested the refund for the turbotax product and today received some cookie cutter reply from Turbotax "Unfortunately, we are unable to honor your refund request." However, they then said they have a 100% Accurate Calculation Guarantee. But when you go to that link, it says you can only qualify if you owe penalties. Well, when I didn't get my refund that Turbotax initially calculated, I contacted the IRS myself and prior to April 15th and found out I owe. I then paid the amount the IRS said to AVOID the penalty. And since I did that I don't qualify for the 100% Accurate Calculation Guarantee. "Come to Turbotax, and DON'T DO your taxes.". They were right afterall. They don't do your taxes (correctly) and leave you in the dust when they miscalculate your refund/amount due. I learned a lot for this experience in general. 1) TurbtoTax doesn't care about you nor the time you have spent trying to file/re-file etc. and 2) TurboTax pretends like they stand behind their product with a guarantee but when it comes down to it, you won't get a refund of the service you paid for. Even if that service is completely inaccurate.