Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

[BligBlueLaser]

@twolf10281 

I’m pretty sure the IRS would not agree that willfully under-reporting your income is an acceptable workaround…

[jcedeno]

Found the issue! Government ran out of money and using this trick to delay submissions.

[afoden]

Solved the problem, at least for me. I tried what @twolf10281 did and delete a 1099 my wife had. Total was under $500 from payments made to her on her Mary Kay website. Changed my taxes by $50.  Probably not the right thing to do in terms of underreporting income, but in this case, it is such a small amount relative to my well over 6 figure income it is rounding error. If the 87,000 IRS agents want to audit me over $50, then so be it. No way I am filing a paper return or waiting 6 weeks hoping they fix the issue. I wouldn't be surprised if what another poster above said about the IRS doing this on purpose to delay having to pay refunds is true.  

I have no idea if underlying problem is on IRS side or TT side, but at least I was able to talk to a live person in under 5 minutes who gave me the same canned answer as others reported. Total incompetence somewhere, just not sure where.

[tobias_funke]

Good to see that I am not the only one with no rental income and yet the form 8960 gets populated and then causes a rejection by the IRS. Saved me from filing an amended return which is the only silver lining as I missed a 1099-NEC. Nonetheless, my return is significant and I would rather not wait for this to be fixed in 4-8 weeks.

First time ever that I have had a problem electronically filing. So is this a TurboTax issue or an IRS issue? Or both? What happen to deleting a form like 8960? Why can we not "OPEN FORM" and see it at a a normal size instead of a small size and then click the number to see where it is populated from and enter whatever is needed to clear the error for the IRS? TurboTax says "NO ERRORS" so I fail to see the issue here.

Good luck to those on pages 1-18....what a $hitshow

[Paradoxdruid]

Just chiming in with another person affected.  Thanks to everyone for the IRS "known issues" spreadsheet links.  Bah.

[gregkzn]

Oh no!!!!  

[gregkzn]

OMG.  Best comment.  Funny but not beyond possibility.  

[gregkzn]

And this administration wants to hire 87,000 new IRS agents I think they just need a good programming group. I’m contacting NBC New York and local. This will make a great story for them.  

[Kimhorn99]

I tried again at midnight of 2/5 and it still was rejected. Isn’t there some way TT could let us know when this issue has been fixed . I have been rejected three times . How many “ chances “ do you get to re efile? 

[Sgent]

Also single-member LLC.  I have a net loss on the year - nothing to do with Rental Income -  and for some reason TurboTax is putting this net loss into Form 8960 Line 4a, then offsetting it with a positive value in the same amount in 8960 Line 4b, so that 8960 Line 4c nets out to 0.  Last year, TurboTax left both 4a and 4b blank, even though the other numbers/forms for the business were almost exactly the same.

So I think this is a TurboTax error and not an IRS error.  Because if I could just blank out lines 4a and 4b in Form 8960 manually, the error (which is due to there being a non-zero value in 8960 line 4a) wouldn't be there.

However, I tried going to Form 8960 itself in TurboTax and using Edit-Override to blank out 4a and 4b, which works for the form.  But then TurboTax won't let me e-file.  TurboTax gives me this error that says:

• Form 8960: Part 1, line 4a should not be overridden and changed for Electronic Filing.  Using an override can prevent the cross-checking that's important to an accurate tax return.  To cancel the override, click on the overriden field and choose 'Override" from the edit menu.

So I think the problem here is that something in TurboTax is erroneously placing values into lines 4a and 4b on Form 8960, and nothing with the IRS.  And then TurboTax won't let you e-file if you manually fix it.

[gregkzn]

So I went ahead and took the plunge and bought HRB and filed with it.  Now my 8960 line 4a shows  $108.,line 4b $0, total line 4c $108 and line 8 $108 like it should be.   TT put $108 line 4a , $ -108 line 4b, line 4c $0 and line 8 $0 which is where the error is. My return has not yet been excepted but definitely not rejected in less than an hour like TT. 

[gregkzn]

The IRS site states now the fix will not be until late February to the middle of March. 

[SMYLZ516]

I would love to hear if it gets accepted using another vendor as that would prove it is a problem with Turbo Tax, even though the IRS site acknowledges the error. This whole idea that we're supposed to wait until some random date for it to be fixed which continues to be pushed out is ridiculous.  It suggests one option of paper filing but if this is an IRS problem and not a TT problem then won't they just reject the paper filing and delay us even longer?!?

[ZHAZ0R]

Same issue as everyone else, just redid everything with HRB online and my return was accepted.   No Form 8960 was generated for me.   I've used TT for 10+ years and finally had enough.  I don't even care about getting a refund from TT.   Not having to deal with TT ever again is worth it.