Efile with form 3520

[ash2sap2]

Hello,

I have a need to file form 3520 along with the 2023 tax return. I also completed form 8938 as part of the Turbotax to list the foreign account information.

However, at the last stage of review, TurboTax indicates that I cannot Efile since I have indicated that I will be filing form 3520 and indicated a count of 1 on the form 8938 for the Form 3520.

I checked with CPAs and it is perfectly ok from IRS side to Efile your return with this same set of information and send the Form 3520 as paper filing separately.

It seems to be a limitation on TurboTax side which must be resolved at the soonest since it is causing grievance and issues for customers.

Please assist and resolve this at the soonest to support e-filing along with the indication that there will be a form 3520 sent via paper mail.

[AmyC]

The Form 3520 is not part of the software. You can upload documents and attach things to the return but this does not yet relate to this form officially. When you mail your return, be sure to use tracking for the safe arrival of your forms.

Reference: Forms Not Included

[ash2sap2]

Thanks so much for your response. I understand that form 3520 is not part of the efile and it has to be paper mailed.

The question is why does Turbotax take away the efile option, given that the form 3520 is sent via paper and is NOT to be sent/filed along with the return as per the IRS filing requirements?

The solution should have been to let people still eFile and the Form 3520 would need to be anyway sent separately via paper mail.

This seems to be a limitation in Turbo tax's implementation.

[DaveF1006]

Yes, I agree. Turbo Tax does allow some returns to file electronically while allowing certain forms to be mailed in in a separate transmittal form.  Perhaps at some point, a 3520 will be a form that can be submitted in a separate transmittal form but for now, this option is not available. 

[SL1234]

Hello,

I'm in the same situation as the original poster. 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 to file the rest of the tax forms with efile.

This is something that must have changed in the latest 2023 TT version, as last year I was able to send my 3520 form by mail, while still being allowed by TT to efile the regular tax return.

So the question would be if the federal tax law has changed and no longer allows part of the tax return to be efiled and part to be mailed, or if this an error in the 2023 TT version, in which case I hope this can be resolved soon.

[meszilag]

I'm having the same issue - last year's, submission was fine - last year, I was able to send my 3520 form by mail while still being allowed by TT to file the regular tax return.

[ash2sap2]

Its almost like Turbotax ended up with a bug in their software or rolled back a feature they had added.

They should fix it to make it more seamless for their customers.

[SL1234]

Considering Turbotax is not willing 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.

[ash2sap2]

I am not aware of any other software which allows e-file in this scenario, Any one else does?

[Darenl]

Hi has this been resolved or have you figured out what to do? Or end up filing by print out and mail it?

[ronnierrl]

Is there a way to submit a request to fix the bug on not allowing efile when the box for Form 3520 was checked on Schedule B? I hope TurboTax will fix the bug, so that I can still efile my Form 1040 and mail in the Form 3520 separately.

[ash2sap2]

Don't know for sure. I reported it via Support, but nothing has happened so far.

[ash2sap2]

I tried one of the competitor one's too and that has the same issue and did not allow e-filing. Guess, paper filing is the only option.

[SL1234]

I gave up on waiting on TT to fix this and went ahead and redid my taxes with TaxAct and I was able to file Federal and State online, and only send my 3520 by regular mail.

[ronnierrl]

I called the TurboTax Expert line, and he did a screenshare. He said that unfortunately, TurboTax will not allow efile when there is a Form 3520. We either need to use another software provider or mail it in.