Should I file by mail? Federal return e-file rejected with "Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax."

[nickos007]

My Federal return e-file was rejected with "Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax". As was mentioned here, this is a known IRS issue and as of 3/22/2023 it still has a resolution date of 3/19/2023.

We are less than 1 month away from the tax filing deadline and I'm concerned that this issue is not going to be addressed before my taxes are due.

Should I go ahead and file by mail?

And if I do file by mail, will I get a refund of the $20 electronic filing fee that I have already paid to TurboTax since I have been unable to successfully e-file due to this issue?

[TiffanyL]

@nickos007 

The projected resolution date for this fix was 3/19, however, it is still currently open. Please see the FAQ link provided below for further assistance:

IRS Known issues and solutions

[nickos007]

Thanks @TiffanyL,

That is the same spreadsheet that I linked in my post above.

Since the fix is 'past due', I'm wondering whether I should just go ahead and file by mail?

And if so, would I be able to obtain a refund of my TurboTax e-filing fee since I have been unable to successfully e-file due to this issue?

[MichelleLO]

Filing by mail is an option or you can give it some more time to see if the IRS gets the issue resolved. 

In regards to the e-file fee, you can reach out to TurboTax Customer Support to discuss your options. Use the keywords billing issues so you get to the right person. 

What is the TurboTax phone number?

[fanfare]

are you getting a refund, if YES, it doesn't matter if you are late.

if you expect to be late, File Form 4868 request for extension of time.

pay your tax due with the form if you mail it otherwise pay online

@nickos007 

[fanfare]

if you go to IRS direct pay and select  extension -> 4868 -> 2022.

and pay any amount, your request for extension is automatically approved.

@nickos007 

[cjtaxguy]

Back in early February my e-file was rejected for the the following reason

"Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax.

Although the IRS Known Issues List is still showing this item as open, it also says steps were taken to address the issue on February 19,2023.

So, I decided to e-file my taxes two days ago and as of now my e-file has been accepted by the IRS and by my State Tax authority.  By comparison, when I e-filed back in the first week of February, the IRS and the state rejected my submission within 1 hour of having initially accepted it.

So, it's possible my filing still might be rejected but 60 hours after e-filing, it is still in an accepted state.

[SForrestLO]

We are aware of the Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. The Business rules need to be modified to reflect the updates to the instructions for form 8960. The IRS will update the Business rules by mid-March 2023. 

Please see IRS Known Issues and Solutions for updates.

@cjtaxguy

[nickos007]

Hi @SForrestLO ,

The IRS Known Issues and Solutions mentions the following for this issue:

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.

Since it is now late March,  please can you confirm whether Intuit has received the updated business rules from the change pages in the Secure Object Repository relating to this issue and incorporated any applicable fixes into TurboTax?

[SForrestLO]

No, Turbo Tax has no notification that the IRS has resolved the issue.  

[nickos007]

Thanks @SForrestLO ,

Please can you clarify how I "resubmit a case in the IRS document that has yet to be updated"? 

[MichelleLO]

The IRS may not have updated its 'known issue' document as they have not indicated that the issue has been resolved. ( A target date doesn't mean it will be completed by that date). Therefore, you may want to try to e-file and see what happens.  If your return is still rejected, then please follow @fanfare's advice above and request an extension and pay the expected taxes due if you owe.

[nickos007]

Thanks @cjtaxguy !

I re-filed my return on March 31st and it was accepted! Yay!