Form 8960 error saga

[Hermitcrabaz]

FYI.  I just received my notice that my refund was approved.  Filed 2/19. Approved 3/18. However, the refund is higher than the amount from TT by the exact amount that TT said I owed on form 8960.  

[Kimhorn99]

So this is interesting, my refund was just deposited and I received 400 less than what I expected. How did that happen. I do think I know . I think they went off the first return I sent in and it was rejected. It gave me time to go back in and ad some deductions but they were like nope ! I am not going to push it. So glad I have it in my account. Now of course it’s in a BANK account . That’s another story. Lol

[tahitijin]

I'm getting the feeling that some software programs are miscalculating our refunds? So far on my transcript the IRS seems to be saying I'm owed $350 more than expected. I wonder why this is happening...

[Hermitcrabaz]

I don’t know. But it bothered me because I’m a perfectionist and want everything correct.   But for me, I went to IRS.gov and created an account with ID.me. I reviewed the entire transcript line by line.  I then opened forms on Turbo Tax and reviewed.  Don’t know about yours, but mine was a discrepancy on form 8960. (I’m using $100 as an example). Turbo Tax said I owed $100 on 8960 based on 3.8% of unearned income. and Fed said I owed $0. And there was $100 more discrepancy between what I received in refund vs what TT had for a refund.  

So, either TT software calculation on the form 8960 is incorrect, or the IRS hasn’t  fixed their end glitch because on the IRS website it says fix is to be estimated in 3/19.   It was weird that the Fed had me as a negative $55 in unearned income on their transcript.  So I owed zero on the IRS 8960 section but $100 on the TT 8960 form. 

I’m going to check my transcript again in April.  I wonder if they will fix or re run and show I need to give them the $100 back.  No idea.   But the refund finally got deposited after 27 days.  That’s my story.  I hope this helps others.   If Turbo Tax sees this, maybe it helps them look into it m, otherwise how would they know. 

[tahitijin]

Interesting. Thank you for sharing. I just double checked my transcript and it seems the 8960 part matched the return. I still have no clue why the refund generated by the IRS is $350 off from my return. Still waiting on the refund but I'll update if/when I receive it.

[donmetz9989]

The fix date is 3/19 and the issue is still open according to the IRS. Will they still count the failed attempted filings due to their error?

2/7/2023

Form 8960

Business Rules

Business Rules F8960-019-04 and F8960-003 were causing returns to erroneously reject and were disabled on 2/19/2023 in efile1040x_2022v5.2 Rules Sets. This was due to the rules not reflecting 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.

Business Rules F8960-019-05 and F8960-003-01 were created with an implementation date of 2/19/2023. The updated business rules will be in change pages that will be available via the Secure Object Repository (SOR) in early to mid-March 2023. Rule Number: F8960-003-01 Rule Text: If Form 8960, 'NetRentalIncomeOrLossAmt' has a non-zero value, then it must be equal to the sum of Form 1041, 'NetProfitOrLossAmt' and 'NetRentalIncomeOrLossAmt'. Rule Number: F8960-019-05 Rule Text: If Form 8960, 'NetRentalIncomeOrLossAmt' has a non-zero value, then it must be equal to sum of Schedule 1 (Form 1040), 'BusinessIncomeLossAmt' and 'RentalRealEstateIncomeLossAmt' unless all of the following conditions are true: 1) Filing status of the return is Married filing jointly or Qualifying widow(er) and 2) Form 8960, checkboxes 'Section6013gInd' and 'Section6013hInd' are not checked and 3) Form 8960, 'FilingThresholdAmt' equals 125000.

3/19/2023

OPEN

[tahitijin]

Good news! According to Where's My Refund, my return has finally been approved! It states I should receive it on March 23rd. 

[CG5402]

Just to let everyone know the IRS still has an internal glitch re Form 8960.  I spoke with their agents today because I received a significantly larger refund that I should have received.  They sent a paper check for the amount that was above the amount I carried over to 2023 taxes.  On 8960 they took out line 4a twice instead of just once and it generated a false larger refund.  I am going to return the refund check with a copy of the transcript and the mistake their computers made.  Otherwise, if I cash it, they will want it back and will pursue getting it back.  Am following the IRS agents instructions.  Everyone needs to see if they are getting larger returns than they expected.

[CG5402]

See my explanation below as the IRS still has a glitch!!!

[CG5402]

You will owe them back the excess refund.

[CG5402]

Just to let everyone know the IRS still has an internal glitch re Form 8960.  I spoke with their agents today because I received a significantly larger refund that I should have received.  They sent a paper check for the amount that was above the amount I carried over to 2023 taxes.  On 8960 they took out line 4a twice instead of just once and it generated a false larger refund.  I am going to return the refund check with a copy of the transcript and the mistake their computers made.  Otherwise, if I cash it, they will want it back and will pursue getting it back.  Am following the IRS agents instructions.  Everyone needs to see if they are getting larger returns than they expected.

[tahitijin]

Thanks for sharing! I double checked and in my transcript, they did not take out line 4a more than once. Phew! So I'm pretty sure it's accurate. 

[CG5402]

Make sure to check the line marked "taxable income per computer" which is where the IRS mistake is at.

[Kimhorn99]

Mine was less and so nice to

see honest people out there. 

[RobertMaxB]

I have the same problem with Form 8960.  Tax return still in process at IRS after 21 days, went and downloaded my transcript.  Same problem as others- IRS calculating 8960 amount differently than Turbotax (on line: "NET INVESTMENT INCOME TAX FOR INDIVIDUALS PER COMPUTER" is different than TT's "NET INVESTMENT TAX FOR INDIVIDUALS".  So my Federal return is held up.  Well, at least this forum helped me confirm what this little delta is.