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

[MichaelG81]

Once pending, you have to wait until your return either gets rejected or approved to resubmit/amend later, by mail or e-file, if applicable to you.

Unfortunately, we are waiting on the IRS known issue to go away and we can then work from there, they will continue to reject return until there side is fixed.

Here is the known issue link to find updates. Search by CTRL F or COMMAND F, and see "8960".

We will not automatically refile without your authorization, unless currently in pending status. But if rejected you must submit once the IRS Known Issue is taken care of.

@STC24 

[Irobro]

Go to the IRS website for known issues a.k.a Project List daily. 

https://www.irs.gov/e-file-providers/known-issues-and-solutions

Go to row 74.  They recognize the problem, know how to fix it, and it's on the schedule for end Feb to mid-Mar.  

[ee-ea]

@MichaelG81 @Irobro   See the info here

https://lithium-response-prod.s3.us-west-2.amazonaws.com/turbotax.response.lithium.com/RESPONSEIMAGE...

[gregkzn]

It should be fix within 24 hours.  I bet  Ukraine doesn’t have to wait till mid March to get the hundreds of $Billions  of our money. 

[engjr]

The IRS website now says the issue should be fixed sometime between late February to mid March.

[engjr]

The IRS website says that the issue should be fixed sometime between late February to mid March.

[randlsa001]

I waited a few days and tried again - it failed again. I then had the idea to delete the small 1099-INT item and to move it to a line item in business income in the hopes that the Form 8960 might be removed automatically by TT - it wasn't. I went ahead and tried to re-file and it was rejected again. I guess I'm waiting until there's a know fix by the IRS. I did go back and put the interest income in the right place again so it will be ready when the error is resolved.

[mtmce]

I was rejected by Turbo Tax x2, rejected by FreeTaxUSA, filed with HR block, but it has been pending for 3 days now...I'm guessing that does not bode well. Hopefully all these rejections don't work against me. 

[MEMCV]

I suppose one option might be to not report 1099's on the current tax return, get one's return, then file an amendment and pay the tax for the 1099s once the fix is done?

[Hollywood4]

My efile was rejected for this reason but not before a pending charge appeared on my CC for the amount I owed the IRS. Your website says my card would not be charged unless my return was ACCEPTED by the IRS. So I ask, will the amount pending drop off? Will I get double charged when I finally successfully EFILE once the issue is resolved?  

Can't get a straight answer from Live Support

[theThip99]

WTF are you talking about???

[gregkzn]

Well, it’s officially wait until the IRS gets this fixed because even my H&R Block return after a week of pending just got rejected. Between the two software programs, TurboTax is a lot easier to use in my opinion so I’m going to stick with TurboTax, even though they should’ve been letting us know about this issue, but so far, no comments from TurboTax. 

[BligBlueLaser]

@gregkzn 

Are you going to get a refund from HRB or has that ship sailed? There is the issue of how HRB completes Form 8960 in regards to Line 4b (it looks wrong/suspect from what people have been reporting).

Sounds like nobody did a great job of communicating this issue...

[F8960-019-04]

Comments from TT is it will be fixed tomorrow.  Going to try and will let everyone know 

[RKR2]

Update to my original message posted on Monday:

After filing with HRB on Saturday and having my status listed as "pending" since that time, this afternoon I received a notice from HRB that my federal return was rejected and my state return is pending until my federal return is accepted.

The notice said:

"Problem: Your return was rejected at this time. We apologize for this inconvenience."

Solution: The problem has been identified.  Please wait until 2/6/23 to re-file your return. No changes to your return are required."

So while their rejection message is much more clear than TT's message (very clearly says there is nothing wrong with my return, vs TT giving me the "Let's fix this!" button to send me in circles trying to figure out what went wrong), this must have last been updated when the IRS still had the 2/5/23 resolution date.

I am eager to see if any returns are accepted this weekend with the rumored (but not posted on the IRS excel sheet) fix date of 2/10/23.