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

[ee-ea]

@bradartigue 

Elsewhere will have the same  IRS problem.

[bradartigue]

You are correct - I guess.  I say "I guess" because TT customer service was saying to delete the form to get it to process, then it came back again as, I guess, I should given the rules.  Reading another 20+ pages from here and the IRS and elsewhere it's obvious that the form is required and should be completed a certain way.  TT appears to calculate the form incorrectly and the IRS processes the form incorrectly regardless of how it is completed.  Lots of issues.  

Recommended approach was to print it all out and mail it - but it would still have this form, printed wrong, again TT customer service not having good info.  It isn't the person's fault, she's been given the wrong answer.

[floydman]

@bradartigue You have the best summary.  Is your best assessment to wait regardless? 

[bhoomi04]

 
@jryansmith02

Glad your Federal Returns were accepted without any issues. Did HRB include a form 8960 for you in your return? 

If yes, what was your 4b on 8960? Is it 0 or is it the negative amount of what is filled in 4a?
I ask because I read someone saying TT and HRB are filling  8960 differently.

For example,
TT: 4a is 1000 and 4b is -1000

HRB: 4a is 1000 and 4b is 0

Few people are claiming TT has already updated the 8960 per IRS 2022 Instructions (while IRS is yet to fix/update their business rule) but HRB has not yet updated their 8960 per 2022 guidelines and therefore they are not facing the rejection issues just yet!

I am very curious if HRB has a real workaround or just getting lucky until IRS updates the business rule to be 2022 complaint. Thoughts?

[sb93]

I filed with HR Block and the Federal return was accepted without a problem. This is an issue with Turbo Tax and they have denied my refund request. I can't believe their software glitch is not allowing me a refund on their broken product.

[ee-ea]

@sb93 

It s an IRS problem!

[sb93]

That's not true if the exact same return was filed with HR Block and already accepted.

[skorfum]

As of Sunday, Feb. 5, 2023 the same problem continues to exist with rejection due to form 8960 processing.  I finally figured out how to get a live person from TT on the phone.  While sympathetic, she said the problem is with the IRS as folks have commented here.  Due to the number of complaints, it would be good customer service for TT to respond in some way with a simple statement to ease our minds rather than each of us tracking it down ourselves.  I will call the IRS tomorrow and try and ascertain when the problem will be rectified.  If anyone on these threads hears anything useful please share.

[ee-ea]

@skorfum 

This has been published by the IRS

[sb93]

That is correct, but TurboTax is incorrectly creating the F8960 form with a negative value when it doesn't apply to some who files as self-employed. The issues, the one with the IRS and Turbotax are unrelated because I have already had my return accepted elsewhere when it was rejected filing with TurboTax. 

[DRGHanson]

That's because you must have $1000 in business income, but it's a non-passive income. So TT declares the income and then subtracts it because it is not passive income.  It's getting this number off your Schedule C most likely.

[jebartlett1]

Could someone let us know the best way to contact TT for a refund?  This is probably the best way to get them to act on this error that is impacting so many people.  Thanks.

[Irobro]

Very well said.  Thanks for the perspective.  In business, you are totally dependent, intertwined with your supporting vendors.  Your customers look exclusively to you, not your vendors. In most cases your vendors are invisible to your customer.  In this case, we know TT is totally dependent on the IRS.  No matter what, when your vendor causes a customer issue it is YOUR problem to fix.

[Irobro]

Yes, I'm going to wait.  I admit I've debated buying HR Block for a few $, entering all the info from scratch, just to see the results.  But, I still think that because this is a HUGE problem for anyone that has a Schedule C and some investment interest or dividends, that the problem will be fixed sooner than later.  Yes, I'm going to wait for a while; paper filing scares me.

[BligBlueLaser]

@Irobro 

Three reasons to wait:

1. According to my Senator's office, they have many open cases of people who filed paper returns in 2020 that are still waiting for the IRS to process their return and issue refunds. The extraordinary delays for paper returns are  well-known.
2. At first, users of H&R Block reported that no Form 8960 was attached to their return which would be wrong if they are someone "Who Must File" according to the IRS's instructions. Then, after a few days, people started reporting that HRB was attaching a Form 8960 but Line 4b had $0. If their Schedule C income on Line 4a was non-passive, this means they are paying 3.8% in extra taxes on their Schedule C income.
3. Users of other tax prep companies (e.g., TaxAct) are reporting the same error.