E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[swabbinsky]

1116 - Part II -

(l) Date paid
or accrued

I think that is the one that others have reported TT entering 'various'.  I never had that but had 12/31/2020.  Now it has 1099 taxes

Also on the Form 1116 AMT: Foreign Tax Credit for AMT

[dembsky]

OK, I see it.  The date fields on my form had the country name or RIC.  So I tried putting in something else:  12/31/2020 and 12/30/2020 were accepted by the form, but still got a TT message that I cannot file because I chose the Simplified AMT method on form 6251 - this is not the error message identified above in the subject line in this community blog. I tried putting in 1099 taxes in the field, but TT would not accept it.  So I'm back to the same place, unable to e-file.  Again, I was able to file if I did not choose the simplified method on Form 6251, but it got rejected after I transmitted.

[swabbinsky]

interesting because I didn't put the 1099 taxes value in. TT did.  I did go in via the interview a couple times.  I can't remember exactly how it worked, but when reviewing the income(?) entries I had to re-enter every time I went back but other than that didn't touch the info I originally entered.

My foreign tax was all reported on brokerage house tax forms from schwab, vanguard, and fidelity

[dembsky]

I guess I can try re-entering foreign tax credit info and seeing what it does, but even without it, I have FTC carryovers on both regular tax and AMT.  So even without any FTC data for 2020, I may get the same message that will prevent e-filing.

[irsispita]

Thanks for your reply Foxbat.

"Changing from the simplified option is a big deal to the IRS, as is moving back to it.  So while you can elect easily in the first year to not use it, changing the election is reportedly quite a pain.  "

My point is - it seems that TTax can efile without issues if I choose the "not simplified" method, without messing with the dates and changing "Various" to RIC (is that procedure actually a sound way to go ?).  My original question still remains the same - are there any actual disadvantages of not choosing the "not simplified" method, apart from more paperwork - something that TTax should be handle for me anyway ? This is my first year of having to do the Form 1116 and I believe I still have this choice. Thanks again.

[Foxbat]

You will find the date field in Form 1116, Part II, column l (for Larry).  12/31/2020 works for most people but another poster is reporting "1099 taxes" also works.

In form 1099-DIV, Box 8 has two blank lines -- if both are "RIC" and the check box is checked, life is good.  Then move on to your Form 1116 and make sure the date field has a valid date (a bit surprised that 1099 Taxes works, but hey, if it does then it worked for at least one person).

[Foxbat]

The error messages and the actual errors can be different.  I got the message you are reporting on or more of my 7 failed attempts.  All finally cleared when I followed all the steps ("RIC", 12/31/2020 and no "various" or blanks in date or country fields) in my long response mentioned above.

[Foxbat]

Advice on selecting between Simplified and Standard is not something I can or should advise you on.  Most people use Simplified but you may have tax situations that require different treatment.

Note that TT error responses are standardized responses and may or may not reflect the actual underlying issue.  As I have mentioned, I got the error notice about AMT as well but when I cleared the 1099-DIV inputs (DO NOT rely on TT to tell you everything is fine because TT does not recognize the error; the IRS will recognize it and TT assigns an error message that is somewhere in the error's solar system) and the Form 1116, then all was well without any AMT changes.

[Foxbat]

Irsispita,

In Form 1099-DIV Box 8 the broker/mutual fund may have listed the Foreign Country or US Possession as "various".  If you run error check with "various" or blanks, TT will NOT show it as an error, but when you try to efile you will get a reject.  In prior years I think "various" or blank would work, but something happened at the IRS, according to TT, and if you leave it blank or as "various" the efiling will reject.  Replacing "various" or blank with "RIC" gets it to work.  Note:  there are TWO blanks in Box 8 that need to be "RIC" and the check box checked. 

Once you have all your Form 1099-DIVs corrected as above, then turn to Form 1116 in Part II, column (l) (as in Lima") and make sure the date format is mm/dd/yyyy (most of us have been using 12/31/2020 and it efiled successfully).  Again, TT will not show this as an error when you run error check, but the IRS will reject it if "various" or blank.

Give it a go and let us know how it went.

[drennman]

It is confusing reading all the discussions about removing/replacing “Various” in Form 1116.   Many people wrote that they replaced “Various” for the entry for “Foreign Country” with “RIC” in Part I, Line 1.  As well as replacing “Various” with a date like 12/31/2020 in Part II, Date Paid.  To see this you must switch to Forms View.

TT does seems to be choking on any entry of “Various” and not just on Form 1116.   I had the same problem on Form 8949 (as I think TT incorrectly flagged an entry of Various for aggregated transactions).  

In all these cases Various is a correct entry and TT should not flag it as erroneous when you try to e-file. 

I kept (the correct entry of) Various in Part I Line 1 and changed Various in Part II, Date Paid to 12/31/2020.

My e-file return was initially rejected until I changed the Date Paid.  Then it was accepted.  

So what’s up with RIC versus Various for Foreign Country?  Just as background.  RIC is the correct choice if you had foreign taxes paid from a mutual fund.  If you had a Canadian stock, then CA is the correct entry for Part I, Line 1.  If you had 2 or more individual stocks say one from Canada and one from Switzerland, the correct entry is Various and that should be why you see the entry of Various on your 1099-B form.  In this latter case RIC would be an incorrect entry.   

I kept the correct entry of Various for Part I, Line 1 but changed the date paid from Various to 12/31/2020 and had no problem with e-filing.  

I suggest that you keep Various in Part I, Line 1 because it is what your 1099-B shows but change the date from whatever is showing up in 1116 Part II to 12/31/2020 per the many comments in this thread.   If your case is like mine your return will get accepted.  Though TT is a moving target and may have made some changes since I e-filed.  

[Foxbat]

drennman,

Good point -- my posts are in response to those with the more frequent mutual fund dividend income.  If you have direct shares as you do, then the correct answer is as you state:  input the country of origin.  If that fails, then using RIC might work but not sure what the IRS thinks of using an incorrect entry to get the return e-filed.  The best solution is for TT to correct their software so that it matches with the IRS requirements and keeps we mere users out of trouble.

[drennman]

Foxbat

You've been a super great help to the many (many) with this problem.  And saved countless hours of frustration for TT users. Including me.  Thanks.

I am not a proponent of changing Various to RIC if you hold individual stocks.  RIC is the correct entry for mutual funds.  I successfully had my e-file accepted with the correct entry of Various for country.  In my case RIC would be a wrong entry (though maybe not for most of the people who ran into this problem).  I did change the Date Paid from Various to 12/31/2020 (which is also a wrong entry) and then had my e-file accepted.  

From my experience it is not necessary to change Foreign Country to RIC unless your taxes are from mutual funds.  Or consider it after receiving yet another e-file rejection after changing the Date Paid from Various.  I like to minimize wrong entries in order to get e-file to work.  But that's my personal approach.

TT should have fixed this so that correct entries don't prevent e-filing.

[Foxbat]

drennman,

I agree.

[drennman]

Yes,  but is TT listening?   

I personally don't like wrong entries in exchange for e-filing and I agree that the IRS probably doesn't either.     

Thanks also for clarifying the individual stocks versus mutual funds.  I think that may also help the many and help them go back to look at their 1099-Bs.   If it's mutual funds then RIC is the correct (and correct by the IRS) entry regardless of whatever TT auto-filled in the field.

[jcsuman]

I am having problem signing the final consent,  the program wont  accept my last name or my wife's names. Please help