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woodward-apart
Level 3

How can I/do I need to file form 8997?

I currently hold QOZ investments; in prior years when I contributed, I've had to manually edit and paper file due to Turbo Tax's lack of built-in support to do deferrals.

 

This year, I've made no changes to my investments, but Form 8997 suggests I'm supposed to file that form to report my existing holdings.   I wouldn't care, except Turbotax doesn't support this form, which means I'd presumably need to paper file (?)

 

If I e-file as is, what happens if I just don't file Form 8997?  Will the IRS just rely on my past filing of Form 8997 or will something bad happen?

1 Best answer

Accepted Solutions
npierson7
Level 1

How can I/do I need to file form 8997?

Form 8997, Initial and Annual Statement of Qualified Opportunity Fund  Investments is a new form. You can file your tax return without that, however according the new IRS rule all taxpayers who holds a QOF investment during the tax year must file Form 8997, even if they did not dispose of any QOF investments. It is unclear if there any penalties for not filing the form.

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4 Replies
npierson7
Level 1

How can I/do I need to file form 8997?

Form 8997, Initial and Annual Statement of Qualified Opportunity Fund  Investments is a new form. You can file your tax return without that, however according the new IRS rule all taxpayers who holds a QOF investment during the tax year must file Form 8997, even if they did not dispose of any QOF investments. It is unclear if there any penalties for not filing the form.

View solution in original post

CuppaTea
Level 1

How can I/do I need to file form 8997?

Hi @npierson7 

 

I have a similar situation to @woodward-apart ; I need to file form 8997 again; it doesn’t affect my taxable income this year. Can I e-file the return and just file form 8997 by mail?

campfred
New Member

How can I/do I need to file form 8997?

I was worried about not being able to file Form 8997 which is clearly called for by the IRS.  Until I found the following IRS link and read bullet point #4 that I've highlighted in bold underlined italics below.

So I have my Form 8997 made out and ready to submit when and if the IRS requests it.  Until then - Thanks for NOTHING Turbo Tax. 

 

https://www.irs.gov/newsroom/what-taxpayers-should-[product key removed]ing-a-tax-return

 

IRS Tax Tip 2018-118, August 1, 2018

Taxpayers who discover they made a mistake on their tax returns after filing can file an amended tax return to correct it. This includes things like changing the filing status, and correcting income, credits or deductions.

Here are some tips for taxpayers who need to amend a tax return.

  • Complete and mail the paper Form 1040-X, Amended U.S. Individual Income Tax Return. Taxpayers must file an amended return on paper whether they filed the original return on paper or electronically. Filers should mail the Form 1040-X to the address listed in the form’s instructions PDF. However, taxpayers filing Form 1040-X in response to a notice received from the IRS, should mail it to the address shown on the notice.
  • If taxpayers used other IRS forms or schedules to make changes, they should attach those schedules to their Form 1040-X.
  • Taxpayers should not amend a tax return to correct math errors; the IRS will make the math corrections for the taxpayers.
  • Taxpayers should also not amend if they forgot to include a required form or schedule. The IRS will mail a request about the missing item.
  • Anyone amending tax returns for more than one year will need a separate 1040X for each tax year. They should mail each tax year’s Form 1040-X in separate envelopes.
  • Taxpayers should wait for the refund from their original tax return before filing an amended return. They can cash the refund check from the original return before receiving any additional refund.
  • Taxpayers filing an amended return because they owe more tax should file Form 1040-X and pay the tax as soon as possible. This will limit interest and penalty charges.
  • Generally, to claim a refund, taxpayers must file a Form 1040-X within three years from the date they timely filed their original tax return or within two years from the date the person pays the tax – usually April 15 – whichever is later.
  • Taxpayers can track the status of an amended return three weeks after mailing using “Where’s My Amended Return?” Processing can take up to 16 weeks.
CuppaTea
Level 1

How can I/do I need to file form 8997?

Thank you @campfred ! That's the best answer I've seen. 

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