The IRS has a processing issue that is triggering Schedule C, line 3, Gross Receipts Less Returns Allowances, reject incorrectly.

[smoothtalk7]

I fixed it why do U have to wait to file until mid march to efile

[rmcguyre]

How did you fix it?  I have same error.  My numbers are correct.  I had a loss because of COVID.  I was guessing the negative amount caused the problem.

[Cass0317]

This is an update issue on the IRS side, so you will need to check back periodically for TurboTax program updates.

I know that the IRS's E-file was down or under updating for Business forms. I am not sure if that has anything to do with it? But at this point, you would just need to follow the direction of the IRS and fix the rejected return accordingly.

Please see the TurboTax FAQ below for instructions:

How do I fix a rejected return?

[LadyGourmet]

How will we know when this issue is resolved by the IRS so that taxes can be resubmitted?

[TerukoL]

As stated above by Cass0317 This is an update issue on the IRS side, so you will need to check back periodically for TurboTax program updates.

[MonaGayle1]

Is there an ETA on this fix?  Have tried using 'parentheses' instead of negative sign, and turbo tax will not accept the parentheses.  This is not fair having purchased the software and being unable to efile, especially as this is the recommended way for faster filing.  I have had friends who had to mail returns last year and they are still unprocessed.  

Has turbotax reported/escalated this to the IRS as an issue? This is very bad customer service.  Going to try to find a contact for Intuit corporate office and report this issue.  

[MonaGayle1]

@smoothtalk7  Could you share how you fixed this to get the efile to work?

[LadyGourmet]

I haven't fixed it in TurboTax because the issue is on the IRS side.  We will have to wait for them to make a fix to their efile system.  Per a message received from TurboTax the IRS fix is expected in mid-March.

[tax_filer]

This error is going to cost me my stimulus check in 2021...

[JamesG1]

Do you intend to file your 2020 Federal 1040 tax return and do you expect to report some or all of the portion of the Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return?  Please clarify.

If this is the case, after the IRS processing issue is resolved, your Recovery Rebate Credit will be available throughout the remainder of the tax season.

[LadyGourmet]

I do not have a recovery rebate credit.  Line 20 is 0 for me.

[tax_filer]

I should have clarified, my apologies. Unless I can efile very shortly, I fear I will miss the window for eligibility determination on the third round of stimulus checks. Based on my 2019 taxes I would not get a check, but my 2020 taxes had a reduction in income that puts me within the eligible income limits. I assume that like the first two rounds, I will be able to get the stimulus money when I file 2021 taxes, but that's not helpful in the short term. 

[LadyGourmet]

Ok...that makes sense.  Wish you luck.  I notice the TurboTax instructions on the Schedule C for for line 3 slightly differ from the IRS Schedule C for 2020 that I was able to pull down.  I have to wonder if that is part of the problem.

[tax_filer]

You as well ❤️ 

That's curious, would you mind linking the IRS Schedule C instructions for reference? 

[LadyGourmet]

Here is the schedule C I found on the IRS site.:  https://www.irs.gov/pub/irs-pdf/f1040sc.pdf 

In TurboTax the instructions (and form) look slightly different.  The instructions in TurboTax shown on the "walk thru - guided feature" says something different - but when the form prints/saves its correct.  Not sure when the IRS plans to fully fix it - but I hope its soon.