The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns Allowances, reject incorrectly. Is this an update error on IRS /TurboTax side?

[jayjones77]

Description of error:
Data in the return is missing or invalid. Please double check your entries.
What needs to be done: You have two options: 1) You may wait to e-file your return at a later date when the issue is fixed (that date is currently unknown). 2) You may print and file your return by mail at this time.

[KathrynG3]

To proceed, check your entries and post any returns and allowances as a miscellaneous expense instead. You will need to delete any amount from Line 2 of Schedule C to keep the correct net income as reported.

To return to Schedule C, enter schedule c in the search box inside TurboTax. Select the Jump to link in the search results. 

After at least one income type is listed, then Rebates and refunds will appear as an option under LESS COMMON INCOME. 

Instead, list this in the last category of expenses, Other Miscellaneous Expenses.

For more information, see: Tax Guide for the Self-Employed: Everything You Need to Know | The TurboTax Blog

[LadyGourmet]

THANK YOU!!!

This worked for me and my transmission was ACCEPTED by the IRS.

[MonaGayle1]

@LadyGourmet  Did you make the changes directly to Schedule C or the Schedule C worksheet?  

Just asking before I give it a try.

Thanks!!

[LadyGourmet]

I made the  changes to the schedule C.

[MonaGayle1]

@LadyGourmet  (which version are you using)? I am not seeing the options on Schedule C

could you share a screenshot if possible?  I can send my direct email if you'd like pls

[MonaGayle1]

@LadyGourmet  guess to clarify, I removed the entry from Line2 of schedule C, but do not see LESS COMMON INCOME section.  

Thx!

[LadyGourmet]

@MonaGayle1 -  I use the Home & Business version and the field actually the MISC section of the Schedule C.   This is how I navigated to the section.

• Business --> Walk me thru everything
• Business Income and Expenses --> Select EDIT for your business entry
• Scroll down to Business Expenses
• Select "Other Common Business Expenses"
• Last section/entry on this screen is "Other MISC Expenses".  The amount removed from the other field was added here.

When I reran - no errors found.  When I submitted - no immediate rejections.  Received an email 20min later that the IRS accepted.  Guess I won't know for a week or so if there is a TRUE issue with submitting this way.  At least it wasn't rejected again.

Hope this helps....

[MonaGayle1]

@LadyGourmet   I definitely must be doing something totally wrong ... I have done this and still getting the immediate reject.  I do not understand.  Did you have to update TT for the hack to work? 

I am using the Home & Business version too.

I would just be happy to not see the Reject. :( 

[LadyGourmet]

@MonaGayle1 - Did you remove the value from Line 2 and add to the Other Expenses section?  It would not be reported in both fields.

[LadyGourmet]

@MonaGayle1 - this is the original message from the other Tax Expert and the instructions I followed:

To proceed, check your entries and post any returns and allowances as a miscellaneous expense instead. You will need to delete any amount from Line 2 of Schedule C to keep the correct net income as reported.

To return to Schedule C, enter schedule c in the search box inside TurboTax. Select the Jump to link in the search results. 

After at least one income type is listed, then Rebates and refunds will appear as an option under LESS COMMON INCOME. 

Instead, list this in the last category of expenses, Other Miscellaneous Expenses.

For more information, see: Tax Guide for the Self-Employed: Everything You Need to Know | The TurboTax Blog

[MonaGayle1]

@LadyGourmet I promise you I am not being a butt; and I appreciate you for coming back to the original thread with the update!!   

I'm probably too frustrated right now and can't see the forest for the trees.  

Let me see if we are having the same issue, because maybe that could be the problem.

The exact error I get on the reject is " Total gross receipts or sales" cannot be a negative amount. 

Was this the gist of your error?  

Also, the link finally opened, but I did not see anything specific to this issue.  

I guess I now need to know how to reach the tax expert you found the information from.  That would be helpful as well.

Thanks again 

Frustrated Filer 🙂 

[cewjr9842]

@LadyGourmet 

So did you move the entry from Line 2 and add it to line 27a on the Schedule C?

[LadyGourmet]

YEP - this is exactly what I did.  🙂 

[LadyGourmet]

@MonaGayle1  - this might be a part of the problem.  My message was not the same as yours.  But it sounds like they may be 'related' because it impacts the Schedule C.

The TAX EXPERT (via TurboTax) where I found this comment is listed below.  Hopefully if you reach out she can help you as well.   

 KathrynG3

Employee Tax Expert