E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[ShadowLink]

I can't believe they marked my earlier reply as spam and removed it.  I had detailed how I spent hours on the phone with customer support yesterday about this issue (and how unhelpful and incompetent they were).  Sounds like they're just trying to cover it up.  

Edit: They had an option to file a report that it wasn't spam, and that surprisingly worked - it's back now: https://ttlc.intuit.com/community/taxes/discussion/re-e-file-rejected-due-to-foreigntaxespaidoraccru...

[ShadowLink]

I went to go call them again (to hopefully be a bit more aggressive about getting this fixed this time), and the contact us page suggested this page which says:

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Some TurboTax customers are having issues with e-filed returns being rejected due to Foreign Tax Credit for US tax being withheld on 1099-DIV amounts received from mutual funds.

If you're experiencing this issue, please go here to receive notifications for any updates related to this issue. 

It sounds like they are actually aware of the issue and you can sign up to be notified.  That said, it also sounds like they don't have any idea why or any ETA on it.

[FalGalME]

I did the latest TurboTax update yesterday, even rebooting the computer, did all of the recommended steps,  the Review showed no errors, and AGAIN the return was rejected (7th time over the past week) with the same error code. Signed up to be alerted when there is a fix under "Contact Us". The IRS is going to be inundated with paper returns if this isn't resolved pronto!

[Periwinkle65]

Have you contacted Vanguard? They may be able to assist. 

[AlwaysOnTheRoad]

There are two approaches for a temporary solution.   The first is to use the "Non-Simplified" filing for AMT.  The other, do not claim the AMT carryover which eliminates the 1116 AMT form.  I have done the latter and will file an amended return when Turbotax fixes the problem... if ever.  If they do not fix...  an amended paper return will be filed.  

Sad to see Turbotax taking so long to fix a problem that has been extensively reported.

[jveranth]

I'm just adding my voice to say that there are probably a lot of us other lurkers who've been watching this thread, tried all the proposed solutions, and are waiting as well.

[OliveMom56]

For those still waiting, and also concerned about reports that the IRS has a backlog of 7 million refunds to process and is telling some filers it will be 10 weeks to get a refund (see the Washington Post today), I used the non-simplified "solution" a week ago and had my refund deposited in my checking account within four days.  So, this work-around is not producing the errors and delays that seem to be plaguing those, often lower income filers, who are claiming child and earned income credits.  Good luck with TurboTax finding a real solution, so you don't have to use the work-around some of us have opted for.

[gvrr]

I had 4 rejections before I rechecked all my 1099-DIV statements carefully and found that one of them has an actual date listed for "Payment Date". I manually modified the date on form 1116 for that to the one reported on the 1099-DIV and refiled. After about 15 minutes, my federal return was accepted. I don't know if this was the actual cause, but it may work for some of you. Good luck.

Thanks to the person who made the original post and the people who replied with their own experiences. Reading them helped me to try out different tricks and kept me sane.

[hongcho]

No go. Still getting rejected.

[Clairezhuzhu]

for what is worth, i had a connected session again this past Saturday (5th or 6th times) with one of their online tax expert (who claimed had 10 years CPA), he was not aware of the this "known" defect in the TT and did some further research on the "simplified calculation" vs "other calculation". He assured me there is no adverse effect if I choose  "other calculation" if there is no AMT due. He explained to me that this choice will only matters to someone who is the first time eligible for such selection and have an AMT due at the same time. I asked him if I can switch to the simplified calculation next year if there is an AMT due, he confirmed as yes. 

So he instructed me to switch to the "other calculation" and then e-filed again. As expected, both Federal and State got accepted, no surprised there. 

[ShadowLink]

I just tried seeing what using the non-simplified calculation does.  I get the same end results, and Form 1116 looks identical; but the Form 1116 AMT has differences.  With simplified, Part 1 is completely blank; with non-simplified it has column A filled out.  With simplified, Part 3 line 15 is blank; with non-simplified, line 15 has a number in it (it gets populated by line 7 from Part 1, which now is non-blank), and subsequently a few other numbers are a little different.  

If it had turned out identical, I'd probably go for it (it doesn't seem like TurboTax has prioritized this issue at all); but given the differences and the IRS warning, I'm a bit hesitant.  

I'm also not sure I'd trust the "tax expert" (though maybe if it was in writing).  That doesn't mean the IRS won't come back later and not like what you did.  I talked to an Intuit "tax expert" the other day, and she made up a bunch of nonsense about how mine was actually being rejected because TurboTax files an amended return (1040X) after a rejection, and the IRS doesn't accept those until March 25.  I'm pretty sure both of that is wrong.

[olsonep]

Yes, you got the exactly right. The REAL difference is that the ATM form is missing the date in a column for part II. The IRS schema for e-filing requires that now. TT need to fix their form so that the date gets added for the ATM form when doing simplified. It can't be that hard to fix, especially since they could just read this thread and figure it out. 

If your failure is with the IRS "parsing" your form (rejected in 4-5 minutes), then the IRS did not read any data and no amended return is needed yet. (besides, wouldn't TT tell you that an amended return is needed and not ready?)

TT is not handling this well. Not quickly. I am very glad I made the decision to file a return with a "typo" that eliminated the AMT form (but kept the same refund amount). oops. Got my refund. The new stimulus check is arriving this week. I'll amend the return to fix the typo.  If I had waited or mailed, I would not have my money. I would not be getting any stimulus money because my 2021 income just might be above the threshold. 

[MaryM428]

TurboTax is investigating this problem with Form 1116

Here is a link for information and to get updates

[olsonep]

That link maybe for issues on the 1116, however it is not for the "ForeignTaxesPaidOrAccruedDt" issue that this thread is focused on. I really hope they are also looking at this issue. 

If an employee that can read/submit software bug reports, please note:

 1) this is a software issue. The IRS changed it's schema for reading the 1116 forms, therefore turbo tax must fix it's forms to conform. Specifically: the date on the first column of section II must be filled with an actual date!

 2) there are two separate situations that result in a missing date:

      a) form 1116 ATM filled out with the "simplified" method leave the date blank. There is no work-around, except by avoiding the simplified method, which is against IRS instructions, but may be ok.

      b) imports of brokerage/investment data will sometimes contain a text string for the date like "various". This should get changed to 12/31/2020. (note: this can be done manually by the user directly on the 1116 form/worksheet)

  3) Besides fixing the problem with the form, TurboTax need to add checks for an empty date field when reviewing. 

[baddogg]

Changing "various" in the date box on form 1116 or the 1116 worksheet to "12/31/20" fixed the problem for me. "various" is often the correct entry (presuming multiple withholding dates) and TTax allows this to be entered (it was fine last year (2019)) but not this year.  I think it's an IRS screwup myself.