Form 8960 error saga

[tahitijin]

I'm wondering if everything is getting held up since we initially had our returns rejected. Frustrating since it was no fault of our own. 

[CG5402]

I seriously doubt that has had any impact on returns.  Some have already gotten their Fed refunds and the problem was a computer glitch that the Fed was aware of from early January.  It is more a problem of volume of returns than the 8960 form problem.  It just will take some patience waiting for the refund.

[Kimhorn99]

My refund was finally approved..!! 22 days after filing.. so happy!!! It sat in received purgatory for a long , long time !

[CG5402]

Glad to hear it!

[Hermitcrabaz]

That’s good news.   So far for me as of 3/17. Mine is still not approved.  It’s been 26 days and refund still not approved.   

I’m now questioning why.  Pretty unfair an unusual.   I got a green check mark by Turbo Tax on 2/19 and. Low audit risk.  Nothing unusual except this 8960 initial rejection. Return accepted but on the IRS app and IRS website, return accepted but refund not approved.  Anyone still waiting or am I the last one?

[tahitijin]

Same problem! In fact when I logged in this morning it said, "We apologize but your return processing has been delayed byond the normal timeframe." Ugh

I had everything ready by LATE JANUARY!

[Hermitcrabaz]

I guess misery has company and I’m not the only one.  I wish there was an explanation from the IRS or Turbo Tax.   Just jeep hearing be patient.   .  

[SForrestLO]

We are aware of the Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. The Business rules need to be modified to reflect the updates to the instructions for form 8960. The IRS will update the Business rules by mid-March 2023. 

Please see IRS Known Issues and Solutions for updates.

[tiredoftaxes2023]

I filed my taxes using turbotax and they were finally accepted by the IRS on 2/21. As of today 3/17 still no refund, so I called the IRS using the instructions in this thread and got to an agent right away. I initially had the error code 8960 and my return was rejected 3 times before it was finally approved. When I spoke with the IRS agent today she informed me that not only would I not be getting a refund of over a grand, and that instead I now owe $. So Turbotax was WRONG in their calculations of form 8960. The IRS said they will be mailing out the notice to me and others I just hadn't received it yet.. but, in the meantime anyone can login to irs.gov to download their transcript (not the "refund tracker") to see if they owe instead and then pay online. To do that you have to register with id.me and scan your ID with your phone etc...takes about 5 minutes but then you have access to see this years return that you already filed w Turbotax and if Turbotax messed up you can see how the IRS ended up calculating it instead. Who knew...Turbo Tax Software isn't perfect afterall. This is the first time in many years that Turbotax told me a certain amount and then the IRS ended up reversing that and telling me I owe instead. At least it wasn't thousands but I am frustrated that Turbotax would let us file if the math on the form still wasn't working properly/set up with the IRS. (The IRS is still projecting a fix for 3/19 in the spreadsheet so I have no clue how they would even know that I owe on 8960...if it isn't even 3/19 yet)...

[DaveMoe]

I filed with the 8960 form twice only to be rejected. My state and federal returns were eventually accepted and my refunds were received rather quickly at the same amounts as references by TurboTax and I filed with an 8960 form. Not sure how my return is different than yours but my experience was not like yours. No idea why. 

[Hermitcrabaz]

There is still an issue with 8960 and it’s not fixed yet.   I just posted my updated information.  

[tahitijin]

I took a look at my tax account transcript as well and now I see there is a discrepancy between my tax liability as calulated on my return vs. my tax liability per the IRS computer. Astonishingly, the IRS believes I am actually owed an extra $350 on my refund vs. what was calculated on the return. No idea why the calculations are different but it seems this is what is causing the delay. 

[Hermitcrabaz]

***UPDATE**** (I just got my refund approved on 3/18.  Filed 2/19.  The refund listed is higher than Turbo Tax refund listed by the exact amount that Turbo Tax said I owed on Form 8960)

Rejected on 2/17.  Filed on 2/19 and accepted.   Now 28 days and refund not approved.   I followed the link posted with IRS updates to this open problem and there is a new date posted on estimated fix date of 3/19/23.  So I created my IRS.gov account and pulled my transcript. The transcript lists what I entered in TT and what the IRS computer has.   Mine matched up perfectly with every single number except one thing.   You guessed it, from 8960.  Turbo Tax has me owing (number for example $100) on my 8960 form and the refund Turbo Tax has is exactly that $100 less than Federal computer So Fed says I should get $100 more than Turbo Tax.  That discrepancy is probably the delay.  Now the Fed transcript is weird. There is a line on the last page on the 8960 transcript that says total investment income and it shows what turbo tax entered and it’s a positive number and correct.   Then below that it says the Fed computer is a negative number for total investment income.  So Turbo tax has my owing that $100 and Federal computer does not. So federal computer says I’m owed $100 more.  

So this business that the IRS is just behind and have so many to process is not true. Form 8960 saga is not fixed yet.  

the Fed still says there is an issue with an estimated fix date of 3/19.   So either the IRS has the 8960 glitch issue wrong. Or Turbo Tax is wrong.  Because my refund discrepancy all come down to that single 8960 number discrepancy.  

[Hermitcrabaz]

Mine too.  Exactly.  See the post I just put up.   Everything matched up except fed says I’m owed more than what TT says and it’s the 8960 number.  In my transcript on the last page the fed computer has my investment income as $-55, a negative number. And TT has a positive number.  So TT multiple that 3.8% to that positive number and gave me let’s say $100 owed.   But federal computer says it’s a negative number so nothing owed.   That number is the exact discrepancy why the fed computer says my refund is (let’s say) $100 more.  

[taxlady28]

2/19 can be 11:59 PM on 2/19.  I always wait until the next day to test it.  Threads get too long and anyone can post to them.  They end up with misinformation and cause confusion.  It makes sense to start a new one.  Programming is a tricky job and making one change can affect something completely different.  I think of it as a plate of spaghetti.  You never know when one piece with touch another.  That is why so much time for testing before a program change.