Why did Review fail to catch 1099-R errors?

[dickster]

While e-filing, I was told my 1099-R forms were incorrect, yet I had been through a complete Review with no errors. Turns out there are three solid lines, and one line broken into three parts.  That 4th line MUST be the City, ST, Zip info, and the line directly above it MUST be a street address (or PO BOX). The Payer's name can take the 1st and 2nd lines, or just the 1st.

I'm wondering why the Review did catch these errors? 
Otherwise, it's NOT 100% correct.

[macuser_22]

Who told you that it was wrong?

Was there tax withholding in box 4?

Did you enter it exactly as on the interview form in the proper boxes?  (see screenshot)

[dickster]

1) I was "told" by TurboTax itself, while going through the E-file process.
2) I have five (5) 1099-R forms, all have non-zero box 4.
3) Three from prior years have four lines of Payer's info, with two lines of Name, one Address, and one split-line of City, ST, Zip  The other two forms were added this year in Forms-mode, and had just three lines each, Name, Address, and one solid line containing Cty, ST, Zip.  Both of those lines were NOT detected by Review, and the E-file process complained, and I had to move Address down one line, and then City, ST, Zip onto the split-line.  My point is that Review didn't detect the "error", and those forms did NOT have an exclamation point error indicator.

[macuser_22]

Entering information directly in the "forms mode" and not through the interview voids the TurboTax accuracy guarantee per the license agreement.    The forms mode implies that you take full responsibility for knowing how to enter the information properly.   Most form checks are not done in  the forms mode since you take control.  TurboTax  will point our errors that prevent e-filing though, even if they were make in the forms mode which appears was done.

 The interview has specific places to enter the address, city, state and zip so that it is properly entered.  The forms mode requires you to know the proper way to enter it which is why the forms mode is not guaranteed to be accurate.

[dickster]

In my opinion, the Final Review should check everything, just as  the E-file Review appears to do. Much of the information comes from the Import of the prior year's forms, and that could be altered in Forms Mode. I believe the E-file Review should be done for the Final Review, even if E-file was NOT chosen. Basically I'm making a suggestion to TurboTax for an improvement.

[macuser_22]

Maybe it should be (BTW - I am just another user like you) but the license agreement explicitly states that the forms mode is not guaranteed  for accuracy - you are on your own.   Entry fields in the forms mode are not formatted and force exact files entry like the interview does, which is why only the interview mode is supported by the accuracy guarantee.   The forms mode should never be used for data entry, but only a method to view the form data.

[macuser_22]

One other comment.  Only 1099-R's that have box 4 withholding get filed as part of the e-filed tax return so only those need to be error checked and only for e-filing.  If mail filing, it does not matter since the physical paper 1099-R must be attached to the mailed tax return.  1099-R's without box 4 withholding are not sent to the IRS and are not error checked for proper addresses.

[dickster]

macuser_22, I get your point about the license agreement, and I'd agree if I hadn't gone back through the Interview's "Review" process, which (in my opinion) should check for errors. Apparently the E-file process does that, even against forms entered in Forms-Mode. The "Review" should also check in the same way, otherwise it isn't "legal" to say everything is "guaranteed 100% accurate".

[macuser_22]

Like I said, some additional checks are made to the data sent electronically (actual forms are not sent - only field codes and values per the IRS e-file schema).  That check only applies after the return has been converted to the IRS e-file format.  The review does not check the electronic format.  If you were mail filing then the error would not matter since you would have to attach the actual paper 1099-R so any address in  TurboTax would be moot.

TurboTax does not say everything is "guaranteed 100% accurate" - it says just the opposite in Section B(4) of the license guarantee:

Quote:
"The Accurate Calculation Guarantee does not apply to tax forms completed in which the data is entered directly by you onto the form, rather than through the use of the in-product TurboTax interview guidance. You are responsible for paying any additional tax liability you may owe and providing any other information Intuit reasonably requests to validate your claim."

If the same error occurred when entering data in the interview then the guarantee would apply, but that is not likely since the address is split into separate boxes for the state and zip information to be entered so that type of error should not happen.

[dickster]

Well, explain why the "Error" button on the Forms Mode page shows missing required information, but did NOT show errors for the Payer's City ST Zip-code fields when I had them in the wrong place?

[macuser_22]

Because the address is not required to do the calculations in the forms mode - the calculations do not care if anything at all is entered for the payers name and address.  if you mail you probably can leave the payers information totally blank and the error check will not care because it is not required information unless you e-file.

[dickster]

OK, now it makes sense. Maybe others will benefit from this discussion. Thanks macuser_22