What should I do when TT generates a form with an incorrect valule?

[tk94110]

I need to file a form 8938. As reported here 4 years ago, TT is filling line 6 (Maximum value of all deposit accounts) incorrectly by simply summing up the "Maximum value of account during tax year" of all my foreign accounts. Because I move money among those accounts, the value TT calculates is much more than the amount I actually owned. 

This bug has not been fixed in four years. In the past year, I just filed tax returns with this error. But this year, because I shifted a substantial amount of money between two accounts, the error is huge in the scale of tens of thousands, and I am not sure if I should file my tax return with this huge error.

I would like to know what Intuit recommends I do. 

I thought I could just use Edit>Override in the Form mode and override the incorrect amount. But this article tells me that I would not be able to e-file and it would void the TurboTax's guarantee. I was going to purchase Audit Defense but that requires I use e-file. 

Should I just file with the error and hope that use the Turbo Tax Guarantee to pay for the penalty if IRS audits me?

[DaveF1006 · Accepted solution]

To report correctly, put each account in Part V with its own maximum value, even if the same money is in more than one account.

• Report the full total on Line 6, even if it seems high.
• E-file your return to keep your TurboTax guarantees and stay eligible for Audit Defense. 
• The IRS understands that aggregate maximums may double-count transfers. This is a common aspect of FATCA and FBAR reporting.

As you mentioned, overriding the forms will invalidate any TurboTax guarantees, and this definitely isn't in your best interest.

[tk94110]

Thank you for the timely response and confirming what I thought might be the best solution.

I wish TT will address this in the future release by adding an extra step of letting the user to enter the account total max value if they know it.

Best,