Cannot file return online after indicating I will file a 3520 form on my Form 8938 in Turbotax?

[caunteya]

I am doing my 2022 tax returns in turbo tax (have an extension). My father passed away and I received proceeds from his inheritance, in 2022, that I intend to report on From 3520.  I also have to file Form 8938 as I have some foreign accounts of my own that I include with my tax return.

On the Form 8938, there is a section that asks if I am also filing some other forms (3520, 3520A, 1116 etc). I put in 1 against 3520 (as I will be filing and sending that separately by mail).  But now, TurboTax is telling me that because I am filing a From 3520 I cannot file my return online and I have to mail it in!!!???

I have used Turbo Tax in the past when my mom passed to also do the same thing as above. And it worked fine and let me file the return online. I mailed in the Form 3520 separately. 

Any idea why TurboTax would not let me file my federal return online? 

Thanks

[Anonymous_]

Perhaps Champ @pk has some input.

[pk · Accepted solution]

@caunteya , I don't understand the issue -- 3520 goes to different address than the 1040 return ( generally ).  You are supposed to be able toe- file your 1040 return along with the 8938 and the 3520 separately by mail.

Please check the message  as to why it is not allowing the e-file. Also check that  under  type of filer ( line 3 ) you have the correct selection.

If nothing works to clear this situation  , and in the interest of time, i would  take a chance and  empty out  Part IV , line 15  and see  if this allows to  e-file, in which case  I will put priority  on e-filing  ( ignore  Part-IV ( line 15 selection  and e-file.  Then  separately  prepare and fill out form 3520 ( which is not supported by Turbo any ways ) and mail it in ( per  3520 instructions ).

Does this make sense ?

pk

[caunteya]

Thanks @pk . I will check this out and revert. Will also share the exact message TurboTax is giving me.

[caunteya]

@pk here is what Turbo Tax tells me in the form of an error in the final review

***

We Won't Be Able to E-file Your Return

It looks like you have a form or tax situation in your federal return that TurboTax doesn't support for e-filing. We do support it for filing by mail. 

Here are the details:

Your return contains one of the following unsupported forms: 3520, 3520-A, 5471, 8621, 8865

Don't worry, even though you are unable to e-file your return, we'll still help you file your return by mail. 

***

Thanks,

Caunteya

[caunteya]

@pk If I clear Part IV, Line 15 (Number of Forms 3520) from 1 to blank, then it clears me to e-file!

This is weird because I have done this in prior years where I indicated Part IV, Line 15 as 1 on Form 8939 and still was able to e-file. Even then, I had separately mailed in the Form 3520 ... so that part is not changing anyway. 

Do you all know if there is a way to get TurboTax folks to help here? Or just suck up and decide to either (a) file by mail or (b) do what you suggested and blank out Part IV, Line 15 and e-file... and mail in form 3520 separately anyway

[SL1234]

Hello,

did you ever figure out a way to get this resolved?

I'm in the same situation. On form 8938 I have to mark off that I need to submit one (1) form 3520. I know this 3520 form needs to be submitted by mail. But the problem is that marking off that a form 3520 needs submitted now takes away the possibility in the 2023 TT version to file the rest of the tax forms with efile .

This is something that must have changed as last year (2022 return) I was able to send my 3520 form by mail, while still being allowed by TT to efile the regular tax return.

[meszilag]

I'm having the same issue - last year's submission was ok, but now TT forces paper submission if forms 3520/3520a are just mentioned in the 8398. I called the support multiple times, with no success.  

[ssp0]

This is still a problem. We cant e-file if we select on 8938 that 3520 will be mailed. The mailing address of 3520 is different than where you mail 1040+8398, I do not understand why is e-file not allowed.

[SL1234]

Considering Turbotax is not willing or capable to solve this bug, has anyone in the same situation (8938 form marked with 1 form 3520 to be filed) tried efiling with a different software? Debating on cutting my loses (money spent on Turbotax) and buying TaxAct, or other software, as well so I can efile. And then just start using that software from now on for the next years instead of Turbotax.

[ssp0]

Yes. Freetaxusa. 

[SOMENBOGU]

I also have the same problem like you.

If I choose to fill in 1 in whether there is a 3520 form, I cannot Efile. I also get the same prompt if I choose to E-file without the 3520 form, which makes me frustrated and hoping this can be fixed

[pk]

@ssp0 , @SOMENBOGU ,  while I was not aware of this issue --- I will try this and see why TurboTax misbehaves ( i.e. does not allow e-file while a 3520/3520A is effective), a way around would be to prepare the return as usual, do not select 3520 ( i.e. none 3520 series are being included ), e-file as  usual, then come back in, go through the process to prepare the 3520, select file by mail, print out the form 3520 and mail that ONLY by mail -- this is just  satisfy the idiosyncrasy of the software ( at present state).

I will try simulate the situation and see why this issue and then call attention of Turbo folks/.

Please accept  my apologies for the inconvenient situation. 

pk

[ssp0]

@pkThe IRS expects to enter 1 in 8938 as it indicates the asset is included in the other form. On 3520, there is a checkbox that needs to be ticked if that was the case. They are linked. I am not going to risk not including that link, (1 on 8938, tick on 3520) because TurboTax has a bug and wants me to paper file. Especially when there are alternative, that are cheaper and able to e-file. I dont think I can tell IRS, if got audited, that TT had a bug or didnt allow.

[SusanY1]

There are two options for a workaround to e-file in TurboTax.  The first is to include the asset that will be reported on Form 3520 even though it isn't required to be listed.   Form 3520 isn't supported by TurboTax and cannot be e-filed.  

Leave the box regarding Form 3520 unchecked.  Then, include the information about the inheritance, gift or trust on Form 3520 which is filed by mail. 

Alternately, you could leave the information off the initial e-filed return and mail an amendment made to check the box (though the IRS will likely disregard it) if it bothers you to not have the information on the return (which I agree would be the ideal situation - but that prevents e-filing of the return.)