Can't efile because of 3520

[ttsasd]

I indicated on Form 8938 that I have a Form 3520 to file by mail. Now I can't efile the rest of my return. I know Turbotax doesn't support 3520, but why can't I efile all my other forms?

[DaveF1006]

Yes, there is way to efile without form 3520.  Since form 3520 is a stand-alone form, you may mail this separately to the IRS just as long as it is mailed in a timely manner.

The IRS allows you to report the same asset on both forms. If you do this, you no longer have to "check the box" that says it was reported elsewhere.

Go back to Form 8938 in TurboTax.

1. Part IV (Excepted Assets): Change the number of Forms 3520 from "1" to "0" (or leave it blank).
2. Part V or VI: Manually enter the details of the foreign account/asset that you were originally going to hide.

Result: TurboTax now sees a "standard" 8938 with no missing pieces. It will allow you to e-file your 1040.

Or you can report it as Option B: The "Empty Box" Method

1. Go to Form 8938, Part IV and remove the "1" from the Form 3520 line.
2. Leave that asset off Form 8938 entirely (this is technically what the IRS instructions say to do if you are filing 3520. 

Here is a link for the download for Form 3520. Once it's filled out, you can mail it to:  Internal Revenue Service Center, P.O. Box 409101, Ogden, UT 84409.

Instructions for filling out Form 3520

[RoberM]

Why wont Turbotax allow an efile if there is a 1 in the 3520 box?  While Turbotax does not support Form 3520 it is a separate paper filing.  What is Turbotax's rationale for creating software code that says "you can't efile if you need a form that we don't support even though the paper form we don't support is not part of your overall 1040 submission".  I worry about a workaround to leave it as an empty box even though we are required to file a 3520.  Lots of people on the forum have this same problem - we would prefer to have the correct information on the 8938 and we would like to efile.  Why won't Turbotax allow that if the 3520 is mailed separately?

[DaveF1006]

TurboTax has a policy that disallows an efile if your return requires a form they don’t support. TurboTax does not support the generation or electronic filing of Form 3520. The software blocks e-filing the full return when it can’t confirm the form is complete and correct. This helps prevent filing returns with missing or incorrect information.

Although this isn't an IRS requirement, TurboTax is cautious as not to incur any liability issues over an incorrect form. TurboTax uses a “supported forms matrix” that automatically disables e‑file if any unsupported form is activated, even indirectly.

I would strongly recommend not using workarounds because leaving Box 1 blank when you are required to file Form 3520:

• creates an inaccurate Form 8938 
• could be interpreted as failing to disclose a foreign trust or gift
• could cause IRS correspondence later