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Level 2
posted Mar 16, 2024 7:29:55 AM

IRS rejected return with Form 7206

I e-file'd my return with form 7206 using TT Premier and it was rejected yesterday. This is the error I see in the e-file status - "An XML document that represents a binary attachment must have a valid reference to an attached file". Data in the return is missing or invalid and cannot be electronically filed at this time. If Form 7206(s) are in the return, review the forms for accuracy and errors. "

I see form 7206 in TT but, the message indicates it most likely is not being sent to IRS. Any workarounds available other than the paper submission of the return? 

0 44 1681
1 Best answer
Expert Alumni
Mar 29, 2024 10:24:55 AM

The development team has given us an update with regard to customers who are receiving the Reject Code R0000-058-01 when trying to electronically file your return.  The resolution to this situation is taking longer than expected and it may not be resolved before the tax filing deadline. 

 

For reference, this information is from the IRS Instructions for Form 7206

 

Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. However, if any of the following apply, you must use Form 7206.

 

  • You had more than one source of income subject to self-employment tax.
  • You file Form 2555.
  • You are using amounts paid for qualified long-term care insurance to figure the deduction.

 

In order to proceed and get your return filed in a timely manner, please follow this advice:

 

1 - If you are required to include Form 7206 as a part of your tax return based on the information above, then you need to print and mail your return.  Electronic filing will not be an option if the reject code persists. 

 

2 - If you are not required to include Form 7206 as part of your tax return, then you can attempt to delete the Form 7206 and try electronically filing your return once again.  If the form cannot be deleted or you still get the reject code, then you need to print and mail your return. 

 

Use the steps in the following TurboTax help articles to delete Form 7206:

 

How do I view and delete forms in TurboTax Online?

 

How do I delete a tax form in TurboTax Desktop (Windows or Mac)?

24 Replies
New Member
Mar 16, 2024 8:04:02 AM

I found this under Intuit TurboTax Help:

 

"Some TurboTax customers may be experiencing an issue/error because TurboTax is adding an incomplete Form 7206 when customers are not required to file it after entering a 1095-A with the box checked for "I'm self-employed and bought a Marketplace plan".

We’re currently working to resolve this issue. If you’d like to receive progress updates, sign up below."

 

Good luck!

Expert Alumni
Mar 17, 2024 1:42:07 PM

Go to this article and sign up to be notified when the update is released: Why is TurboTax adding an incomplete Form 7206 when I'm not required to file it? 

 

You won't be able to e-file until this happens.

 

@itsnewcva 

Level 3
Mar 18, 2024 2:07:30 PM

Got the same error last Friday and TT tech support had no answer after going through the file.  No new updates out as of Monday at 5PM EST and I was just rejected again, same error. 

Expert Alumni
Mar 18, 2024 2:31:06 PM

Some TurboTax customers may be experiencing an issue/error because TurboTax is adding an incomplete Form 7206 when customers are not required to file it after entering a 1095-A with the box checked for "I'm self-employed and bought a Marketplace plan".

We’re currently working to resolve this issue. If you’d like to receive progress updates, sign up below.

 

 

Sign in to get follow-up notifications

 

@Jbeck 

Level 11
Mar 26, 2024 10:40:33 AM

@itsnewcva @Jbeck @Seydawg64  the 7206 should be available if you updated your program .  You will have to delete the 7206 that was already completed, then go back through the interview related to the 7206  related to healthcare plans though to complete it correctly. It was supposed to be updated in the 3/29 release. As I don't find it outstanding any longer, I believe update went out already.

The issue would be the bad 7206 file is still attached and MUST be removed.

Level 2
Mar 27, 2024 11:52:14 AM

I tried it again after updating TT to the latest version and the e-file got rejected again for the same reason. Looks like it's not yet resolved by TT.

Level 11
Mar 27, 2024 12:11:19 PM

@itsnewcva did you delete the form as instructed and go back through the interview related to healthcare? The bad form may still be attached is the issue and why you would have to delete it and go back through that interview. Please let me know and I will contact someone at TT as it fell off the working on list.

Level 3
Mar 27, 2024 12:15:40 PM

My TT was already up-to-date, there had been no update to download.  I deleted the Form 7206 and went back through the interview and re-inputted all the SE Health Insurance amounts.  I Efiled and it was rejected again. I will wait for the update to come and see if they fixed it.

Level 2
Mar 27, 2024 12:18:09 PM

@maglib I have not been able to delete form 7206 as TT adds it back right away with the exact same content as before. I did try going thru the interview related to hc one more time with the hopes of getting it to regen the form but no luck. 

 

Level 11
Mar 27, 2024 1:11:39 PM

@itsnewcva so the issue is with the form name that was attached, did you delete all that was related to  Form 7206, if you go to your schedule C, what shows on line 15 and the support for it is from 7206?  did you try to e-file again after going through it as it's just a naming convention issue?  Do any errors show in forms mode? I'm sorry for putting you through this. I don't work for TT.   Possibly it will be 3/29 update.  In case it isn't the next thing is doing a diagnostic file for TT employees which is simple to do.  

 

Level 2
Mar 27, 2024 1:53:32 PM

@maglib I managed to delete form 7206 and I went thru the Interview for HC again but, this time no form 7206 but,  Self-employed health insurance deduction in Schedule 1 (line 17) is blank. 

Level 11
Mar 27, 2024 2:24:13 PM

Self-employed health insurance deduction
***To get this deduction, your Schedule C must show a net profit.****
The deduction amount generally can't exceed your net profit amount.
If you (or your spouse if filing jointly) were eligible to participate in an employer's health plan during any given month—even if you declined the coverage—the premium you paid for that month can't be claimed under this deduction.
Health insurance premiums you paid for your child, even if you aren't claiming them as a dependent, are eligible for this deduction as long as your child was age 26 or younger at the end of 2023.
The self-employed health insurance deduction shows up on Schedule 1, line 17.

C Line 15 support comes from 7206, There is also 1040/1040SR Wks that feeds Sched. 1.
Did you follow all the input for Self Employed Health Insurance? https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-health-insurance-premiums-turbotax-home-self/L59djSwe7_US_en_US?uid=luab79pb

Level 2
Mar 27, 2024 7:10:38 PM

I got the self-employment health ins deduction back now - I guess I forgot to check the 'I personally paid health insurance...' box in K1.  But, the underlying issue with form 7206 still exists. On e-filing still getting the same error "An XML document that represents a binary attachment must have a valid ref to an attached file..."

 

I see this message at the bottom of form 7206.

A self-employed health insurance adjustment of $<amount> from premiums paid through an exchange is included as an adjustment to income but does not appear on these worksheets

 

I also got a message from TT that this issue has not yet been fixed. 

Level 11
Mar 27, 2024 7:54:48 PM

@Jbeck @Seydawg64 @itsnewcva   Just found out from a TT specialist this is planned fix later this week.  

Level 3
Mar 29, 2024 10:10:33 AM

No update as on 3/29/2024.  Last update has not changed result, still rejecting Efile with 7206 included.  I have been waiting 2 weeks for a fix that hasn't shown up, guess I will mail a paper copy and request a refund for my Efiling fees.  Next year I will be considering something other than TT, especially if HRB has figured it out...

Expert Alumni
Mar 29, 2024 10:24:55 AM

The development team has given us an update with regard to customers who are receiving the Reject Code R0000-058-01 when trying to electronically file your return.  The resolution to this situation is taking longer than expected and it may not be resolved before the tax filing deadline. 

 

For reference, this information is from the IRS Instructions for Form 7206

 

Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. However, if any of the following apply, you must use Form 7206.

 

  • You had more than one source of income subject to self-employment tax.
  • You file Form 2555.
  • You are using amounts paid for qualified long-term care insurance to figure the deduction.

 

In order to proceed and get your return filed in a timely manner, please follow this advice:

 

1 - If you are required to include Form 7206 as a part of your tax return based on the information above, then you need to print and mail your return.  Electronic filing will not be an option if the reject code persists. 

 

2 - If you are not required to include Form 7206 as part of your tax return, then you can attempt to delete the Form 7206 and try electronically filing your return once again.  If the form cannot be deleted or you still get the reject code, then you need to print and mail your return. 

 

Use the steps in the following TurboTax help articles to delete Form 7206:

 

How do I view and delete forms in TurboTax Online?

 

How do I delete a tax form in TurboTax Desktop (Windows or Mac)?

Level 11
Mar 29, 2024 12:19:30 PM

 

@

Level 2
Mar 29, 2024 2:30:13 PM

Where do I set the reject code?

Level 2
Mar 29, 2024 3:01:41 PM

I meant where do I find the reject code as I only see the error message "An xml document that represents a binary attachment....." . I just want to make sure the error code R0000-058-01 quoted is the one that applies to my case.

Level 3
Mar 30, 2024 6:05:42 AM

Yes, error code is the same as reject code - if you have error R0000-058-01  for the form 7206, then you're out of luck and you must print and mail it in...TT has given up trying to fix this in-time for April 15th.   If you know anyone with HRB with additional leftover online federal filing slots, and you can afford the time to transfer your TT data with some additional editing, you will be able to submit...HRB never had a submission problem with this form.    Good news is if you do this, then next year you can buy HRB which is usually cheaper than TT and now I know HRB is no better or worse than TT (I guess TT touts that their interview process is 'the best', but after you do your taxes for a number of years, I bypass the interview anyways).   Terrible that we don't receive any compensation for buying a program that doesn't do what it is supposed to do.  

New Member
Mar 30, 2024 11:06:16 AM

Have you heard if they're planning on having it updated by 4/15 so we can e-file with

form 7206?

Expert Alumni
Mar 30, 2024 11:43:39 AM

The development team has given us an update concerning customers who are receiving the Reject Code R0000-058-01 when trying to electronically file your return. The resolution to this situation is taking longer than expected and it may not be resolved before the tax filing deadline. For reference, this information is from the IRS Instructions for Form 7206:

 

Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. However, if any of the following apply, you must use Form 7206.

  • You had more than one source of income subject to self-employment tax.
  • You file Form 2555.
  • You are using amounts paid for qualified long-term care insurance to figure the deduction.

To proceed and get your return filed in a timely manner, please follow this advice:

 

1 - If you are required to include Form 7206 as a part of your tax return based on the information above, then you need to print and mail your return. Electronic filing will not be an option if the reject code persists.

 

2 - If you are not required to include Form 7206 as part of your tax return, then you can attempt to delete the Form 7206 and try electronically filing your return once again. If the form cannot be deleted or you still get the reject code, then you need to print and mail your return.

 

Use the steps in the following TurboTax help articles to delete Form 7206:

 

How do I view and delete forms in TurboTax Online? 

How do I delete a tax form in TurboTax Desktop (Windows or Mac)?

Level 2
Mar 31, 2024 10:30:34 AM

I contacted TT customer service to address my dissatisfaction with the form 7206 issue in the desktop version of the software. In response, they suggested that I create a TT online account and provided a service code that waived the online cost to $0, considering I had already paid for the desktop version. However, the tedious part ensued when I had to manually input all the information from the desktop software into the online version. The positive outcome was that I successfully filed my taxes electronically after spending 2/3rds of my weekend manually entering the data.

Given Intuit's substantial resources, it's disappointing that they haven't streamlined the process further. Specifically, they could have enabled the online version to import the current year's tax return data from the desktop version, similar to what they offer for the previous year. This would have significantly reduced the time and effort required on my part. The customer service representative mentioned that Intuit has been encouraging customers to transition to the online version for a few years now. If this is the case, it raises the question of why they continue to sell a buggy desktop version.

 
 
 
 
 
 

Expert Alumni
Mar 31, 2024 11:46:21 AM

The development team has given us an update concerning customers who are receiving the Reject Code R0000-058-01 when trying to electronically file your return. The resolution to this situation is taking longer than expected and it may not be resolved before the tax filing deadline. For reference, this information is from the IRS Instructions for Form 7206:

 

Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. However, if any of the following apply, you must use Form 7206.

  • You had more than one source of income subject to self-employment tax.
  • You file Form 2555.
  • You are using amounts paid for qualified long-term care insurance to figure the deduction.

To proceed and get your return filed in a timely manner, please follow this advice:

 

1 - If you are required to include Form 7206 as a part of your tax return based on the information above, then you need to print and mail your return. Electronic filing will not be an option if the reject code persists.

 

2 - If you are not required to include Form 7206 as part of your tax return, then you can attempt to delete the Form 7206 and try electronically filing your return once again. If the form cannot be deleted or you still get the reject code, then you need to print and mail your return.

 

Use the steps in the following TurboTax help articles to delete Form 7206:

 

How do I view and delete forms in TurboTax Online? 

How do I delete a tax form in TurboTax Desktop (Windows or Mac)?

@itsnewcva