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

[marytony]

UPDATE AVAILABLE NOW on Turbo Tax so if you open your 2022 tt and click on "Online" then "check for updates" and let tt install the update.

I just updated and filed my federal for the SEVENTH time, so don't believe the rumor going around that you can only e-file five times, it obviously is not true. This update DID NOT MAKE ANY DIFFERENCE - IRS STILL REJECTED MY RETURN.

As far as what we've previously found about the IRS is working on an update which is due to be fixed 2/5/23, nothing has changed on the IRS site pertaining to this issue:

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 2/2/23)

[denisep962]

I am getting the same error. I do not now nor have I ever owned rental property. I tried two or three times to submit the return. I hate the idea of mailing it in. I will wait until the fifth and retry I guess. I have never had a return rejected and I have been using Turbo Tax for years. I have no idea if this is an IRS issue or a Turbo Tax issue.

[matteboy19]

I was also having the same issue as everyone else. 

Have been using Turbo Tax for over 20 years with no issues but this is just insane.

After having my return rejected 3X by the IRS I gave up on Turbo Tax or the IRS fixing this issue.

I filed my taxes online with Etax.com and my return was accepted by the IRS within 1 hour.

So I hate to say this but this looks like a Turbo Tax issue as well as an IRS issue.

Also....Etax.com's customer service is far superior to Turbo Tax's!

[BligBlueLaser]

@marytony  

Just installed - please update us when you find out if you're accepted or rejected after this update.

[denisep962]

How much did you have to pay? If this is still rejected after the 5th, I may do that also.

[RKR2]

If your return was accepted when you used H&R Block, that seems like it is a TT issue, not an IRS issue.   This is so frustrating, and all for $600 of 1099 income!

[marytony]

The update from tt does not resolve the problem, returns are still rejected. if you were able to get an accepted return, then I would have to agree, it's not just on the IRS, it's also tt. supposedly tt was going to upgrade after the irs fix on 2/5 but if returns are being accepted on other sites.... well then maybe it's time for a change. Sad, I hate to use another software but I need to get e-filed like everyone else does. I've used tt since it came out. hate to have to switch but when they don't even offer help and their reps haven't been told about it either, I mean not even an interoffice memo ?!?! it stinks. Every time I e-file, I fear it'll tell me I have to file paper, however I'm on try #7 of federal e-file and #5 of my state e-file.

[RogerLS]

Installed update - e-filing still rejected.  No fix yet.

[BligBlueLaser]

@marytonyand @RogerLS 

Thanks for the updates, sorry to hear this. I guess now we hang on that IRS spreadsheet getting updated? Having overpaid estimated taxes last year (large refund), paper filing is just about the worst option...

[SChampl578]

I am having the same problem. Got the reject F8960-019-04 saying form 8960.

My business income was automatically transferred to rental income.

[BligBlueLaser]

@SChampl578:

Best information so far is that the error is misleading: the IRS does in fact want Schedule C income included in line 4a (and then subtracted on 4b if it's non-passive income). This seems to be the cause of the problem that the IRS describes in its Known Issues spreadsheet: you should include those amounts but our systems may reject your e-filing when you (properly) include those amounts.

In the end, we can't know for certain if this is only an IRS "business rule" problem until the IRS updates its systems and then somebody successfully transmits an e-filing.

[dsummerly]

Here is the IRS link, look at line 74. It has the Form 8960 issue with a fix date of 2/5/2023.

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

[gregkzn]

I had the same issue after I installed the update this morning hoping it would make a difference, but it  got rejected for the same issue. Once all this is over, I’m going to dispute the charge on my credit card for the purchase of TurboTax. 

[gregkzn]

Thanks so much.  Hopefully this takes care of the issue.  IRS site will probably crash with all the TT people submitting their taxes 🙂 on the fifth. 

[sfmatthews]

Same issue, just posted for update notifications. Thanks all.