Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

[BligBlueLaser]

The troubling thing is that the information which TT support experts look up when you call  is…

> THIS THREAD <

(They “solution” the directed me to when I called about the issue was this thread).

[taxingfilerr]

Pointing to this thread is better than the solution I got when I called and discussed with 2 separate TT reps over the phone with screen share to show them the message- they said to print out my return and mail it in as is

[stretchdebbie58]

Same error same situation.  Programming error.  these should be blank but are pulling in our income from our business then putting a negative adjustment to get to zero and IRS doesnt like that  They need to fix the programming.

[BligBlueLaser]

If I understand correctly, not a TT programming error: TurboTax is doing exactly what the IRS now wants - the problem is that the IRS hasn’t yet updated the business rules in their systems. Thus the 2/5/23 date from the IRS for a fix in their systems.

[glaksla]

This had me scratching my head. I have never had a return rejected. I am told maybe by 2/5/23 this is cleared, this must affect a lot of people. 
i hope I can re efile. 

what an inconvenience this has been 

[glaksla]

2/5/23 they say the IRS will fix this error 

[glaksla]

87,000 new agents and billions spent 

[DrJamie]

Came here to say I am receiving the same error. Are there any updates with a fix? No one seems to know what to do. 

[marytony]

Thank you all for adding your comments here. I have been trying constantly for a week to fix the errors I get on my rejected return. I've been talking with tt reps constantly. Of course there are different answers depending on who I talk to. I've changed my forms so many times, they aren't even MY tax forms any more. Tt has had me change so many items on so many forms, I'm not even comfortable filing it any more and had to start a completely new one.  This information I FINALLY  found today about the error you're discussing has given me hope again that I will be able to efile. I really do appreciate you all putting your information here since tt has NO IDEA what their reps are saying, of which by the way, none of them have even suggested this particular issue may be the reason for my rejections. I've been using ttax since it came out years ago. I have to say the last 2-3 years have been VERY stressing using their program. If they trained their reps for the error issues it would really help and I wouldn't feel like I've been left in the corner by myself ! So thanks to all of you for adding your comments, it really does help so much. 

[BligBlueLaser]

Nobody knows what to do? Read the replies in this thread, including the reply marked "Best Answer":

From "Known Issues" on the IRS Website (emphasis added):

"Business Rules F8960-019-04 and F8960-003 may cause returns to erroneously reject. These business rules need to be modified to reflect the updates to the Instructions for Form 8960 (Tax Year 2022) regarding the Specific Instructions for Line 4a to include Schedule C (Form 1040) amounts reported on Schedule 1 (Form 1040), line 3 and Form 1041, line 3. [...] Projected Resolution Date: 2/5/23"

Is your error "F8960-019-04"? Then it appears that the IRS is the problem...

[DrJamie]

“No one knows what to do”- their customer service reps on the phone and Twitter don’t know what to do. 

[marytony]

I just talked with TurboTax rep, Mr Kalu. He has a 'team meeting' this afternoon and will bring this to his supervisor's attention. He has not heard anything about this issue with the form 8960 until now and tried researching but nothing came up, other than this community stating the IRS is expected to have it resolved by 2/5/23. It is on the IRS end, not ttax however it may take a few days after the IRS expected fix date to be updated on ttax. So we are supposed to wait to try to e-file again after 2/9/23. 

Apparently there is NO WAY around the issue if you want to e-file. Apparently the only option is to wait for the fix to be applied to ttax and that date is approximately FEB 5 to FEB 9. I would have to agree with this since I've been on the phone more than once every day since 2/23/23 trying to get my e-file return accepted. Together, tt and I have deleted almost every schedule & form to attempt to get my return accepted. I do not have a 1099-nec on my tax return, however I am self-employed, which is most likely where the problem exists. I have multiple other types of 1099's. included on my return.

As far as only getting five attempts to e-file, no one can actually CONFIRM this is true with a statement from any professional service. This morning was my SIXTH attempt at filing my federal return and it was allowed, but the return was rejected. It was my FORTH attempt to file the AZ State return and that was obviously rejected because the state cannot be received until AFTER the federal return is accepted.

So just a suggestion, wait to file any state returns until after you have an ACCEPTED federal return, or you are wasting your time and attempts, if there truly is a limit. 

[gregkzn]

Thanks for the update.  I got the same information from TT representative.  She didn’t know of the issue until she put me on hold. It’s on the IRS to fix this.  I guess that’s why they need 87,000 new employees.  It’s time for a national sales tax so everyone has to pay even those that get paid under the table with no taxes withheld. No more of this IRS and TurboTax nonsense.  

[Malachiix]

In the same boat. Saving this thread to see from others that it's working as intended.

[laurenbcoles]

I spoke with TT and they directed me to this thread. Sounds like anyone entering a 1099 is getting this issue... She tried to have me delete the 8960 forms, as they're not relevant to me, but the system wouldnt let us. Could someone please reply once they're found a solution, or after 2/5/23 validated its been corrected?