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.
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?
How will we know when this issue is resolved by the IRS so that taxes can be resubmitted?
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.
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.
@smoothtalk7 Could you share how you fixed this to get the efile to work?
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.
This error is going to cost me my stimulus check in 2021...
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.
I do not have a recovery rebate credit. Line 20 is 0 for me.
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.
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.
You as well ❤️
That's curious, would you mind linking the IRS Schedule C instructions for reference?
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.
Hello, the IRS is rejecting my e-filing because of Schedule C, line 3. Did you figure out how to fix this? I have gone back and forth showing what I have is correct, I wondering is this is a glitch problem they are also having because I just can't figure this out. If you can help me, I would greatly appreciate it. TurboTax does not walk you through fixing this error.
@danyjw01 To summarize the thread so far: TurboTax says the issue is on the IRS side of the submission process. Your e-filed tax return will be rejected until the IRS resolves the issue. Originally, TurboTax had a mid-March estimation for the IRS fix, but they have since removed this from the rejection explanation text and now there is no estimated date.
So, what are your options:
Bonus option to help prevent this situation in the future: Contact your district representative and your senators.
Thank you @tax_filer
However, mid-march until the filing deadline is not much time. Do you work for TurboTax?
I work in IT at a software company. There should be some type of escalation of issues to either Turbo Tax or the IRS. When you say the thread said mid-march, where is this thread? Is this thread just between users or actual persons at TurboTax or the IRS?
I am hard pressed to understand how the IRS strongly recommends e-file as the best option, and yet some users of the online software or purchasers of the software are unable to e-file.
I also cannot understand how they have integrated the stimulus payments into the software, but an error this glaring is overlooked & not quickly fixed.
All users who are unable to efile should be refunded their purchase price for the software and the aggravation of having to be told to wait , and wait with no fix!
@MonaGayle1 I agree. The filing deadline is quickly approaching and I'm not happy about it. I don't work for or have any affiliation with TurboTax, I'm just another person in the same situation as the rest of the folks in the thread who had their return rejected with this error. I actually in work tech as well.
Both the original post and at least one other reply in this thread mention mid-March, but I was specifically referring to the message in TurboTax when you attempt to fix the return where it says the following: "The IRS has a processing issue that is triggering Schedule C, line 3, Gross Receipts Less Returns Allowances, reject incorrectly. 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." When I first filed at the end of February, it had said mid-March as the estimated date rather than "that date is currently unknown." The fact that they no longer have a date at all seems like a bad sign to me.
Believe you me, we are on the same page being frustrated by this. This is ridiculous, but it also sounds like it's not TurboTax's fault specifically. If an API is returning a bad response to valid data, the people maintaining the API (the IRS in this case) have to resolve the issue, not the people trying to pass data to it. I have no idea if that is really what's happening here, but that's the way I've been interpreting things with my developer brain. The IRS is notoriously underfunded and understaffed so resolving bugs in a timely manner may not be possible. Like I suggested in my last post, I definitely recommend pushing your national reps to try to change this.
All that said, even if it's not really their fault this time, a refund or something would be a nice gesture from TurboTax given the inconvenience. That and the fact that much of way tax filing works today is the result of lobbying from companies like TurboTax, so in a way, this is kind of their fault...
I believe we will need to move forward with a new company this tax season. No other tax software provider is having this issue and TT doesn’t appear to be committed to making certain that their tax forms are properly update so that they will transfer to the IRS without issue. If everyone were having the same issue with all electronic software, I would believe it to be an IRS issue. Right now all fingers point back at TT.
Hey Folks.... circling back on this HOT TOPIC.
For everyone tracking and following this issue - found another Tax Expert posted thread on this forum. She gave precise instructions on how to 'fix' this issue so the IRS would not reject the transmission. I made the suggested changes, resubmitted and my forms were accepted by the IRS.
GREAT - to continually come back to this thread and see that I was not the only one going thru this. And YES - I also got thru to the IRS and this is an issue on their side. Other tax preparers were performing this HACK (best way I could put it) to get eFile transmissions thru.
Took me over a month to get it resolved...but it beats mailing in my forms any day.
GOOD LUCK!
@LadyGourmet I could kiss you haha. It will take a few days to know if my return has been officially accepted, but this didn't result in an immediate rejection like the last few times. Thank you for posting the link and for confirming the issue was really with the IRS.
For the sake of putting the information in more places the "hack" is essentially to modify your Schedule C form to remove any Rebates and Refunds listed under the income section and add them instead to the expenses section under Miscellaneous Expenses. Your net income should be the same after this change.
See the link in LadyGourmet's post above if you want to see it explained in a little more detail by an "Employee Tax Expert" who has more tax cred than me. 🙂
Hi LadyGourmet, are you able to tell me how to get my taxes processed due to the trigger issue? I copied and pasted the link you provided but I couldn't pull anything up. If you could assist me, it would be greatly appreciated.
@tax_filer I am still having the issue, and for some reason the link posted under @LadyGourmet original post will not open for me. I am at my wits end.
Have done all the steps note, but still am getting the reject, but when I run the Smart check, I am not seeing errors.