Form 5965 Processing Error continues at IRS

[Slhpete]

Can someone post if this ever works since it is Still not working when the IRS estimated it would?  Guess those fired IRS workers don't care any more even if we do!

[CatinaT1]

The update will happen sometime today, so try again later today or tomorrow.

[Eneskey]

I tried to submit mine yesterday and still rejected. On the IRS Known issues site it says resolved.. has TurboTax not done something on their end? When should it be ok to submit?

[CatinaT1]

The IRS updated the system this week to start accepting e-filed tax returns with Form 5695 Joint Occupancy. However, a processing problem still exists. To ensure the accuracy of tax returns, TurboTax is working hard to eliminate the issue. The expected resolution date is April 4, 2025. On or after that date, please log back into your TurboTax account, fix any error messages and e-file your tax return. 

There is also an option to print and mail your return. If the special rule for joint occupants applies to you, please make sure that the box on line 32a of Form 5695 is checked. Then attach a statement to your printed return that explains how the special rule applies to your situation. 

This statement should include:

• The names and Social Security numbers of all joint occupants.
• A description of the property and the nature of the improvements made.
• An explanation of how the costs were shared among the joint occupants.

TurboTax does not automatically generate this statement, so you will need to create it yourself. Make sure to include this statement when you mail your tax return to the IRS. 

Here is a possible template that you can use:

Statement for Special Rule for Joint Occupants

Taxpayer Name: [Your Full Name]

Taxpayer Identification Number: [Your SSN or ITIN]

Tax Year: [Year]

Names and Social Security Numbers of Joint Occupants:

[Full Name of Joint Occupant 1], [SSN of Joint Occupant 1]

[Full Name of Joint Occupant 2], [SSN of Joint Occupant 2]

(Include additional names and SSNs if applicable.
 

Description of Property and Improvements:
 

The property is located at [Property Address]. During the tax year, the following energy-efficient improvements were made to the property:
 

[Description of Improvement 1] (e.g., installation of solar panels, energy-efficient windows, etc.)

[Description of Improvement 2] (if applicable).
 

Explanation of Cost Sharing:

The total cost of the qualified energy-efficient improvements was $[Total Cost]. The costs were shared among the joint occupants as follows:

[Your Full Name]: $[Amount Paid by You]

[Joint Occupant 1's Full Name]: $[Amount Paid by Joint Occupant 1]

[Joint Occupant 2's Full Name]: $[Amount Paid by Joint Occupant 2]

Based on these contributions, I am claiming my allocable share of the energy-efficient home improvement credit. My share was calculated as follows:

Credit Allocable to Me = (Credit Limit for Property) × (Amount Paid by Me / Total Amount Paid by All Occupants)

[Eneskey]

Thank you. One last question. 

I see that if I mail it I will need to submit an explantion form as you outlined.

Once TurboTax fixes the processing issue on April 4th, so that I can e-file... will there be a way to attach an explanation form to the e-file? Or how would that work?

[Slhpete]

I doubt it will be fixed to add a statement since the date has been delayed several times already.   I just wrote an explanation and sent it as an amended return after efiling without any cooccupant referenced.