Tax Year Prior to 2020: Unable to efile due to QBI Deduction Worksheet Schedule B

[tagteam]

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@cep755 wrote:

Ok, so Form 8995-A will be available after 01/27/2022......

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Correct; that is the current schedule for both print and e-file - 1/27/2022

[taxidr23]

I don't think any of the "experts" fully understand the issue preventing e-filing with the QBI deduction.  The problem is not form 8995 but the signed statements that must accompany it.  There is no way to upload them into the filing.  

[tagteam]

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@taxidr23 wrote:

I don't think any of the "experts" fully understand the issue preventing e-filing with the QBI deduction.  The problem is not form 8995 but the signed statements that must accompany it.  

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Not true; we are aware that the safe harbor statement has a signature line requiring, presumably, a signature and, yes, this is problematic.

[taxidr23]

Happy to see this specifically addressed as the other replies seemed to dance around the issue.

[tagteam]

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@taxidr23 wrote:

Happy to see this specifically addressed as the other replies seemed to dance around the issue.

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Definitely. There was an issue with a completely different safe harbor statement, also requiring a signature, that was resolved, Hopefully, the issue with this statement will be resolved as well.

[HoriTT]

Why is the safe harbor signature line problematic, if the signature line on 1040 is not? Why can’t it be signed electronically?

[tagteam]

It could be a TurboTax development issue. 

Frankly, we do not know for certain as we, as merely contributors to this board, have limited insight into that area.

[DM26]

And why is this so problematic??  It's a matter of uploading a document just as done with some other forms (e-filing, etc.).  Uploading the Safe Harbor signed election was allowed when filing 2019 taxes but then NOT allowed last year.  I have not yet purchased tax software for 2021 as I am waiting to see which software allows this.

[jdddddd]

I am waiting as well. Please get this done. Thank you.

[curt504]

Only adding a thought to this thread re efile 1065/1020s etc.  2 yrs ago I efiled one of my filings via TT, a year later I got a notice and a fine for NOT FILING!!!  I got the acknowledgement via turbo tax which I suppose came from IRS...   I then paper filed, registered, took pictures of me putting the forms in the envelope, putting the green registered mail sticker on, took pictures of the USPS recept..  I've had to mail those pictures  to the IRS on a few occations.  

I know of no perfect way to file due to IRS failures.   Just paper file folks, take lots of pictures and save in your cloud storage for the TT files etc.  :( :( :( 

I do agree though that if you need to efile so you can get an IRS transcript you are stuck efiling!!   :(

I always extend and file close to the extended due date.  I was at a tax class;  if you paper file its recomended to mail 2+ weeks prior to the due date to make sure you get your post marked by the due date and into the IRS mail received system to avoid the automated IRS notices of late / no filing.  Best to all.

[tagteam]

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@curt504 wrote:

I always extend and file close to the extended due date. 

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There is nothing inherently wrong with that except it does give the IRS a longer period to audit your return, which period starts from the due date or the date the return is filed, whichever is later.

[DM26]

Based on some of the posts some seem to think this issue is a recent one.  This all started when the QBI deduction was first introduced with the Tax Cuts and Jobs Act.  The first tax year allowing the QBI deduction was 2018 however since it was still new the application of it as it pertains to rental activity was not fully clear or defined.  Subsequently the Safe Harbor procedure came forth but was not finalized until 9/24/19.  TurboTax initially did not offer attaching a signed Safe Harbor election to 2019 tax returns but after receiving numerous complaints finally had their developers fix this issue.  This fix (update) was done on 4/1/2020 - see the post below which was copied and pasted from a March 27, 2020 posting included within this same topic.  

Last year when preparing tax returns for 2020 TurboTax again did not not initially offer the ability to attach a signed Safe Harbor statement and they again received nonstop complaints.  Unfortunately for 2020 TurboTax failed to update the software to allow it.  I had to paper file in order to elect the Safe Harbor for 2020.

So, obviously TurboTax is capable of allowing the attachment of the Safe Harbor signed election just as they did with the 2019 software.  Also, this has nothing to do with the IRS as professional tax software has allowed this attachment each year including 2020.  It basically boils down to whether TurboTax wants to put forth the efforts and determine whether it is in their best financial interest. Hopefully if enough customers stress the need and complain TurboTax will make this an option for  as long as the QBI deduction remains.

Below is the post from March 27,2020

 DavidS127

Expert Alumni

‎March 27, 2020 11:12 AM

 

Form 8995-A Schedule B e-file will be enabled in the update scheduled on or about 4/1/2020.

@blackjack21

[tagteam]

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@DM26 wrote:

Also, this has nothing to do with the IRS as professional tax software has allowed this attachment each year including 2020.

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Of course it has nothing to do with the IRS but the developers are the personnel who determine what to change in the products and when to do so. The only recourse is to wait.

[DM26]

Yes, I am waiting just like others.  I however am not “waiting” just on TurboTax but am keeping on top of other tax software developers as to such an update.  If for example Taxcut, Taxslayer, Taxact, etc. come up with an update first then goodbye TurboTax.  Their loss for inaction or delayed action.

BTW my comment regarding the IRS pertained to an earlier post suggestion that the IRS is responsible for this issue.  

[apuaar00]

Yes we are waiting for the updates too... If you happen to find out of updates with other software please put it out on this forum. 

Thank you!