Can I e-file all except one form?

[CuppaTea]

 (re-submitting so it shows up as an unanswered question and doesn't look like I've already answered my own question)

that doesn't affect tax liability, and paper file that form?

Last year I paper-filed my federal return because I needed to include form 8997, which TurboTax doesn't support, to defer capital gains due to a Qualified Opportunity Zone investment. This year, I've had no changes, so Form 8997, which I"m required to file again, is just for information purposes - it doesn't impact the tax calculation.  May I e-file my federal return without this form and send it to the IRS by mail? I could not find anywhere in TurboTax (Deluxe) to add a statement that I'm doing this, but I could provide such a statement (along with a copy of the first page of the 1040) when I mail the 8997. 

thanks

[Cynthiad66]

Yes you can mail the form separately.

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.  Per @npierson7

[lori58sf]

so do i send form 8997 to the same address as i would if paper-filing return ?   and do i just provide first page of return with letter showing e-file date and form 8997 which is just informational for me also for 2020 tax year.   that said, TTax really needs to allow file attachment when attachment does not impact tax return calculation.  

[JeffreyR77]

No, the instructions for Form 8997 say to attach to your tax return. The form header itself says to Attach to your tax return.  Until TurboTax supports the form, if the form is required, the tax return will need to be printed and mailed.

Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

@npierson7  @Cynthiad66

[CuppaTea]

That's odd - conflicting answers from two people who are both listed as "Employee Tax Expert"!

Jeffrey and Cynthia, are you both employees of Intuit? 

By the way, I agree with the comment that TurboTax should allow attachment of pdf forms that do not affect the tax calculation. 

[lori58sf]

lets hope TTax is checking on this thread and will allow forms attachments next year when forms do not affect return calculations!  In fact QZ investments has been introduced since 2018 tax year.  now 3 years later, TTax, has no excuse not to include it.   at least support the simple QZ transaction which does not involve complicated situation!  with the price tag charges on TT Business Version, TT needs to enable that feature for 2021 Tax return! 

FYI, I think it is OK to add 'Additional' form and explain that f8997 will be mailed separately and e-file.  then mail in f8997 plus just form 1041 and proof of e-file and a cover letter.   IRS just scan incoming doc per SSN/EIN.   so F8997 will be pulled into your return.   

Of course on F8997 it says to mail in return.   

So, it is a risk to take .   I decided to e-file and use above approach simply because info to be mailed is informational only.   I would not recommend if forms to be mailed affect actual return in such it may change numbers!  

good luck.