E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[amankg]

Use non simplified amt form . I submitted and it worked.  Basically try to fill such that form 1116 part II IA,IB,IC columns have date even though amount is against 1 date. For that you need to use non simplified amt checkbox

[ShadowLink]

While the non-simplified way works, you run the risk that the IRS will (later?) get mad at you for changing methods.

TurboTax is definitely aware of the IRS change.  When I talked to support last week (which I wrote up here, a few pages back in this thread), at one point Support Person 3 suggested something about a binary attachment to explain the wrong date (which matches with what @amankg mentioned here earlier in this thread).  I asked him how do I do that, but he didn't know.  It did seem like he was also checking with someone else, but we ended up not doing anything with this idea.  Clearly, the binary attachment is something that TurboTax should be preparing - that document is from the IRS to tax preparation software companies.

That said, it sounds like they don't understand it... Hopefully that has changed since last week.  I originally tried to file my taxes on Feb 27 (almost 3 weeks ago) - I hope they fix this soon.

[KP96]

Thanks for this detail.

My question is does the IRS allow a change from simplified method to non-simplified method ?  

My understanding is that there are some implications to this if prior years are using the simplified method and there are foreign tax credit carryovers.   in my case I have a large amount of carryovers as my income is 100% foreign and pay local foreign tax.   

[KP96]

Thanks for this recommendation and tried before as well.

Unfortunately this did get rejected.

Hopefully TT will sort this issue soon.  

[amankg]

It is true that you cannot change you method for AMT calculation. But calculation is only to check AMT applicability and not regular taxes. So check your past final returns and see if you have ever submitted form 6251 or AMT form 1116 . If no IRS will not know which method you used for AMT calculations in past .That is my point of view but you can read about AMT or AMT FC

[baddogg]

So....does anybody know how the H&R Block program deals with this? Same problem or not? It be interesting to know, especially for next year! TurboTax better get their act together soon or there might be a lot of defections just to see!

[TaxNJPH]

Thank you.  I was finally able to remedy after trying a number of fixes.  My 4th attempt to submit electronically was accepted by the IRS.  To fix I had to change Part II A on Form 1116 to "12/31/2020" from "Various" for the "Date Paid & Accrued" .  "Various" is more more precise (as all the foreign taxes were paid on dividends throughout the year) .  "Various" was accepted without issue for my 2019 filing.  I'm not sure if the validity check issue is a result of the IRS changing its validation algorithm or with TurboTax.  Nevertheless, I was able to solve and submit.  Thanks again.

[MariaSchmu]

Confirmation of TaxNJPH's and others' solution:  Prior to 2020 Form 1116 was accepted under date as "Various", this year TT automatically put RIC in the date field, taking it directly from the questions  following the 1099 DIV forms.  Changing the "RIC" date  on Part II of the 1116 Worksheet to 12/31/2020 (changes 12/31/20 automatically) fixed this problem.  The rejects took less than 5 minutes, acceptance took longer.

[hilmarlehnert]

Just a quick clarification: "various" will always get rejected. An actual date (12/31/2020 or 12/30/2020) seems to be hit or miss. Sometimes it gest rejected, sometimes it gets accepted but no one seems to know why.

[Ronlep]

I have tried to e-file numerous times and have been rejected each time.  My rejection message is IRS1116/ForeignTaxCredit Source/USTax Withheld on Dividend Amount - Data in return is missing or invalid.

when I check status it says to go through the Foreign Tax Credit questionnaire.  I have done this. I've also checked Form 1116s along with the 1116 worksheetsI have no errors in TT.  I have deleted and re-input. Nothing has resolved the issue.  Still getting rejected.

[tapper100]

I get the same rejection notice, and have spent ~5 hours on the phone with ~6 different TurboTax people in the past few days. With TT's "help" I've had 5 efile rejections, and you're only allowed 6 rejections before you HAVE to file by mail. ,angry emoji> So I'm down to my last attempt - which I will wait until ~April 14th to do, to give TT and/or the IRS more time to get this worked out.

[tapper100]

Djszabo,
Which error code were you getting, ForeignTaxesPaidOrAccruedDt or USTaxWithheldOnDividendAmt?

[baddogg]

fyi, the link speaks for itself:

https://www.cnbc.com/2021/03/17/irs-pushes-april-15-us-tax-deadline-to-may-15.html

[Riley51]

Mine's been rejected four times now for this exact reason; I'm glad I read this whole thread or I wouldn't have known you only get 6 tries!  I don't see 'various' anywhere and the dates all seem to be correct.  I shouldn't need to file the AMT version of 1116 as I don't owe AMT, but once I tried deleting that form and it didn't help.  I did notice that on the AMT version, there is nothing in Part 1 of the form, whereas there are entries in the same places on the regular 1116.  Of course when I tried to fill it in I got a message that you can't override it or you won't be able to e-file.  You'd think after the weeks this has been going on they would have a fix by now, and filing by mail would be a real pain with a 60+ page return.  I also wonder if I could get a refund for paying to e-file my state return?   I'd rather file sooner than later as I'm getting a refund, but I guess I'll have to wait and see what happens to the forms when I update the program again after some time has passed.  Sad!

[LinaJ2020]

The issue has been submitted and is currently under investigation.  If you would like to receive an update for the progress, click on the following link to get notified:

Form 1116 reject error

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on your US tax return.  To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit.  The amount will show on Schedule 3 line 1 and line 20 on Form 1040.