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

[gregkzn]

Thank you Mr. tax attorney

[gregkzn]

Nope. Look at it carefully this is the newest update on the timeframe. copied and pasted below. 

Business Rules will be updated sometime in late February to mid-March 2023.

[gregkzn]

Thank you so much for supplying that letter. I’ve already emailed both of mine. It usually takes them two weeks to reply, but hopefully something can get done.

[kyfiler]

I was told on Feb 1 that it’s an IRS problem. Was provided the link (shown in a prior message in this thread) which indicated it should be fixed on Feb 5. I checked last night (Feb 4) and the IRS now says it’ll be resolved in late Feb to mid Mar. This is unacceptable. Form 8960 (for me, anyway), generated because I have a small business. So EVERY single-member LLC will experience this same issue u til resolved. I’m owed $20k. This is not an insignificant problem. I’ll be calling my House Rep and Senator on Monday. 

[marytony]

ScottSMN thank you very much for taking the time and initiative to write that letter on behalf of all of us. I will copy, paste, sign and send tomorrow too. Good job !

I think any new people to this post may want to start at page one for the answers to your questions as they have all been addressed here.

It is unfortunate we're all waiting for someone that filed on another software to come back and tell us they have in fact received their refunds. We are all hoping there is a faster solution than the possibility of a mid-March e-file. But as I've said before, I doubt the IRS will allow any software package to actually process a return completely to the refund, before the IRS has their fix completed.

The IRS is the basis of the problem, step 1, ground zero. They changed the required filing just this year, as others have stated too. IRS did not prepare the change in this step 1 of the process properly, therefore anything after that step 1, will be incorrect, ie TT, H&RB, eTax

I do hope otherwise, but I'm sure we can all agree, that's most likely not how it's going to work out. A problem at the foundation presents a problem all the way to the end of the project.

Our frustrations are with the IRS, knowing this is a problem and not immediately addressing it so we can file properly. Tax season comes at the 'same time' (or close to the same time) every year and they hired so many more employees, not to mention most of us can't imagine it would take a programmer two months to write code for one issue. 

Open tax season has progressively moved further and further each year. 2020 open tax season was January 27th, last year (2021 tax season) there was also an e-file issue, this moved open season to February 12th. This year, for those of us that fall into the new 'Business Rule', we can't file until mid-March, WE HOPE. This is unacceptable for sure, to say the least.

Honestly though, it's in our best interest that TT has stopped the e-filing of our forms so we don't have to deal with a bigger problem down the road, like having to file amended returns. I assume any e-filers that did already e-file on the other tax prep sites, before they also stopped the e-filings, will all have to deal with that nightmare. TT does make the amended form simpler than most other sites to, in case anyone was wondering. But it is still a pain to have to do one, as I've had to find out.

[Zoeleela]

Here is my logic, please correct me.

We are due a large refund. By switching to HRB, if IRS accepts, we will get it sooner rather than later. If at some point IRS wants an amended return, HRB will do that and we shouldn’t owe the IRS any more money (we paid for in person HRB service, some $250 more than TT —asking for TT program cost to be refunded to credit card). 

[Wvcritter]

I attempted to file with TaxAct and received the same error message.  

The Federal electronic return was rejected due to the error(s) shown below:

Rule Number: F8960-019-04
Rule Number Description: The IRS is updating Business Rule F8960-019-04 to include Schedule C (Form 1040) amounts from Schedule 1 (Form 1040), line 3. These updates will be implemented by mid-March. Please repeat the Filing steps to resubmit your return after that time. We apologize for the inconvenience.

[pmc01]

Does HRB not have the same reject issue?  Is this confirmed?

[marytony]

In the very beginning of this post, people were saying they were able to e-file on both H&RB & on eTax. However, shortly after, they were no longer to. Once those two companies updated, they had the same error message.

Recently though, I have read here in this post some people have been able to. Assuming this is possible, you have to ask yourself WHY. If the problem starts at the IRS, then why would it be ok to file elsewhere when every tax prep software package is affected by the IRS rules ? 

I am self-employed and so starting this year, I do need the form apparently.

I did start to file on both of those sites before I realized what may happen if it is in fact accepted. I've been through a VERY LONG DELAY, last year because of a $1 discrepancy and don't ever want that to happen again. So I'm waiting. If it was just a matter of filing an amended return after I receive my refund, I would do it. 

BUT I believe it will then cause a long delay, not just an amended return. I mean it was MONTHS before I could get my refund last year and I had to hire the Tax Advocate Service to help me get it !

I too wish there was a simpler way around this, but you should consider what COULD happen if you file now and it's erroneously accepted.

[hellocward]

Hi, have this error and talked to an expert 2/5/2023. He said this is being addressed right now, and better to wait to e-file than to submit by mail: IRS won't even begin looking at mail filings until April. 

[B1GM0N3Y86]

Spoke to TT last night. I don't have much confidence in any of them any longer. I was advised by both the representative and the supervisor to just Delete Form 8690. I advised them I have had to file this form every year due to income that I have. 

I ended up speaking to TT resolution today in regards to the amazing recommendations their tax people advised me on doing, ended up with a 50% discount for my troubles. 

[Kblalock35]

I just attempted to refile and it was rejected again 

[angryfiler123]

Same here.  Have same error message as in original post.  Got rejected last week and again Feb 5 (the original promised fix date from IRS).  

[twolf10281]

I solved the issue but it may not be a permanent one. I had a small amount of income via a 1099. When I removed that form it return was accepted. It was processing the income on the form 8960 which caused the return to be rejected. Removing it solved the problem.