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

[carter76]

I've got the same issue - return rejected on Sunday and then to add insult to injury I get a follow up email from TurboTax a little bit ago stating:

"CRITICAL REMINDER: Your tax return needs to be corrected and re-filed.  Don't forget about your rejected return!  We want to help you get your taxes filed on time.  We’re here to help you update and re‑file your return."

Really?  I understand that the underlying issue is with the IRS, but the bigger problem here is that TurboTax isn't prepared to actually help its users.  TT is supposed to be the expert and its customer service team should have been prepared and on top of this.  The fact that we all have had to rely on each other to get the answers is unforgiveable.  What are we paying them for?

[Malachiix]

Right! 

As a customer, we should not have to research the errors and problems on our own when we are paying a service to handle such things. Following a forum thread is ridiculous and I am glad I did not try to resubmit many times.  In 35 years of doing taxes I have never had a filing denied, and the fact that TT is NOT on top of this and even stopping customers with similar scenarios known to cause the denial from submitting electronically until they know it is resolved is really quite shameful. 

[RogerLS]

When you say "we should all be able to file" by 2/5/22, does that mean I need to resubmit, or will TurboTax do so automatically?

[laurenbcoles]

I was told to wait until after 2/5 and then remove my 1099 income line, re-enter it, and then check the forms page to see if the 8960 is still there. If it IS, then it’s not fixed and you have to wait. If it isn’t, then you’d have to resubmit and it should work. 

[BligBlueLaser]

@RogerLS 

I don't know for certain, but I think we'll have to try it again ourselves. Probably worth confirming on the IRS website that the resolution has been implemented, and then waiting a few days to give TT a chance to address any knock-on effects?

I see someone just posted that you should, "remove my 1099 income line, re-enter it, and then check the forms page to see if the 8960 is still there. If it IS, then it’s not fixed and you have to wait."

However I don't believe that is correct: if you have 1099-NEC income, my understanding is that you are supposed to enter it on Form 8960 as of 2022 - but because the IRS has not updated their business rules to reflect this new requirement, our e-filings are getting rejected.

[beebe95]

None of the 5 tax reps I have spoken to are knowledgeable about there even being an issue.  All say it is IRS at fault, but if it is the IRS's problem, then why is the TT software not picking up the issue when we do the final checks before filing.  Additionally, we were struggling with the IRS IP PIN.  Called the IRS automated phone which did not work during non-working hours, never needed to speak to anyone, to get a new PIN.  But again, for as messed up as that is, TT did not find the lack of the PIN to be a fault during the QC of our filed taxes.  So it looks like TT and the IRS was not prepared for these new item(s)! 

[marytony]

Today is wed 2/1/23. I've called the IRS three times and no one there knows anything about any issues with ANY 1099's or the form 8960. Last call to IRS general phone line which I cannot include here, option '1' for English, option '2' for personal taxes (also goes the same direction for option '2' for business), option '2' for Help filing a form, option '4' for a general tax question, option '2' for self-employed. the call was answered by operator (#[phone number removed]) which may be removed by tt. He checked for any issues that the IRS may be working on as far as the form 8960  and returned with "NO issues". They are NOT working on any updates or corrections. He said it sounds more likely it's on TT end, not the IRS, which leaves me even more upset. He then also check into the possibility that one can only e-file up to FIVE times. He checked and came back to tell me he cannot find anything according to the IRS pertaining to any limit as to how many times a person can attempt to e-file.  I myself stated yesterday, that I attempted to refile my federal for the SIXTH time and I was NOT told I had to paper file at that time. The IRS agent feels this is also on TT end, not IRS. Yes, I do see this all over google, but that doesn't make it true. I think I will try to e-file on another tax prep site, if for no other reason but out of curiosity. I don't know why there is no other information on other sites in regards to this 8960 issue nor is there anything about 1099 issues, not matter which 1099. There is zero reason for my taxes to include a form 8960. I have not have any investments this year. and do not have any forms that SHOULD HAVE produced a form 8960. I would appreciate it anyone knows where on the IRS site to find this date of 2/5/23, they would list a link here. I'm curious to know if it's a real deadline date or if it was a 'rumor' type of information started and continued by us on this 'blog'.

[alexclaytor]

Thanks for the update, I accepted it as a possible solution so it's shown right at the beginning of the thread with the other 2 - the IRS info and the TT support indirect response given to a user.

This is pretty distressing we still have no official comment from TT on the matter even after I tagged multiple employee representatives on this thread.

[RixReeves]

The IRS employee that you talked to doesn't know what they're talking about.

It is a known issue to the IRS developers, is listed on their "known issues" page, and has an expected resolution date of 2/5.

Here is the IRS known issues page: https://www.irs.gov/e-file-providers/known-issues-and-solutions
This issue is in the file for 2022 year, line 74 as the file currently stands.

[beebe95]

I called the IRS today also.  No issues with the form; TT, what say you?  Please fix this issue soon or refund my money as I cannot submit without getting this resolved.  Thank you for all the preparation work you didn't do during the tax off-season.... and I really appreciate that the time since my last filing is greater than the gestation period of a human fetus.

[RixReeves]

TT has already stated that it's an IRS issue.
It absolutely IS an IRS issue; please look at my last comment in this thread to see the link where the IRS states that it is an issue, that they know about it, and that they are working on it.

[marytony]

EXCELLENT WORK RixReeves !!

You are correct, there it is on the link you provided:

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

it brings up: Tax year 2022 Production Known Issues and Solutions (Updated 01/25/2023)

The first line refers to tax year 2022 and when you click the link and scroll down a bit you can find form 8960:

Date entered - 1/17/2023

Form Type - Form 8960

Issue Type - Business Rules

Description of the Problem - Form 8960 Business Rules F8960-019-04 and F8960-003 may cause returns to erroneously reject. These business rules need to be modified to reflect the updates to the Instructions for Form 8960 (Tax Year 2022) regarding the Specific Instructions for Line 4a to include Schedule C (Form 1040) amounts reported on Schedule 1 (Form 1040), line 3 and Form 1041, line 3.

Solution(s) - Business Rules F8960-019-04 and F8960-003 will be updated in early PY2023

Projected Resolution Date – 02/05/23

Date Resolved – field is blank

Status - OPEN (as of today 2/1/23)

This is in fact an IRS issue, even though their own agents don't seem to be able to locate this issue. I wish they had updated it since 1/17/23

WOW !! Good work ! It's in black and white.

[meganetrix]

Regardless of the IRS issue, I find it unacceptable that no one at TT has addressed or commented on it. They are simply ignoring us, and that is a bad experience that I will keep in mind next year when I file and when I recommend service to my family members. The many instances documented on this thread of TT agents hanging up on customers without explanation are disturbing.  I am definitively never using TT again. I had many issues during the capture process, and, in the end, the inability to file is the last nail in the coffin.   

[meganetrix]

Where is the TT response? The only solution posted is from a user who found the issue on the IRS website, I have not seen a single response from TT 

[Phish Fan]

My return rejected for the same Reject Code F8960-019-04 (i received the "action required" emails) but my desktop continues to show my efile submission to be "pending" (three days after I received the "action required emails").  Is there something I should do to make my table top TT aware that I have a problem and need to work on the return (and resubmit it)?