Turbo tax 2024 doesnt allow efile due to having form 3520

[craftindo]

1. Anyway to get around & trick?

This year 2024, i already bought turbo tax. 

2. any suggestion other software package? i'm thinnking of trying other free tax usa.

[JohnB5677]

Please clarify your question.

Unfortunately, we can't see your screen to see where you are, so I'll have to ask you a couple of questions.

Form 3520 is for Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts.

• Do you have foreign accounts?
• Do Foreign accounts show up on any other documents?
• Did you have foreign accounts reported last year?

This is a 2023 tax return being prepared in 2024.

Please contact us again with any additional questions or to provide some additional details.

[craftindo]

yes, correct.

You need to be aware that a lot of people wokring in USA are from everywhere around the world. And, lots of countries have their own version of 401k. This is counted as trust so lots of us need to file form 3520 which disquialified by Turbo tax to e-file. You allowed us in previous years, and this year is the cutting point that we migrate to another software to file.

You don't need to see my screen the title is clear form 3520. I don't need Turbo tax to file the form, but by disallowing us to efile means, dissallowing us to give money to turbo tax.

[JohnB5677]

I did some further research on the 3520 issue. 

This is a known issue.

Currently, TurboTax does not support the E-filling of this form.

You probably have an 8938 to go along with the 3520.

TurboTax does support the 8938.

If you are filing an 8938 (Statement of Specified Foreign Financial Assets) and you indicate that you have a 3520 (Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts), it will stop the E-file.

This can only be filed by mail, and TurboTax does not support an E-file at this time.

You will have to file it by mail.

However, if you are reporting a bank account or an investment account on the 3520 you can duplicate the entry on 8938 and leave off that 3520 indicator.

@craftindo 

[mallanmba]

"If you are filing an 8938 (Statement of Specified Foreign Financial Assets) and you indicate that you have a 3520 (Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts), it will stop the E-file. This can only be filed by mail, and TurboTax does not support an E-file at this time."

Yes, it is true that 3520 and 3520-A are not supported by Turbo Tax, but WHY does that prevent E-File? 3520 and 3520-A are never filed with a 1040 - they go to a different address. I have been E-Filing with Turbo Tax for over a decade, and 2023 was the first tax year that it prevented me from using E-File because I said I had 3520s to file. It makes no sense, this is a bug that needs to be fixed.

I am furious that my 2023 taxes could not be E-Filed, if Intuit hasn't fixed it for 2024 I will be using other tax preparation software.

[rpromm]

I don't need to file form 3520.  How do I unselect the requirement for form 3520?

[rpromm]

ChatGPT says:

Do U.S. Taxpayers with a Canadian RRSP or RRIF Need to File Form 3520?

In most cases, U.S. taxpayers who own a Canadian Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) do not need to file Form 3520 due to a special IRS exemption.

IRS Exemption from Form 3520 for RRSPs & RRIFs

• The IRS Revenue Procedure 2014-55 eliminated the requirement to file Form 3520 or Form 3520-A for Canadian RRSPs and RRIFs, provided that:
  • The U.S. taxpayer makes an election to defer U.S. taxation of earnings inside the RRSP/RRIF under Article XVIII(7) of the U.S.-Canada Tax Treaty.
  • The election is reported on Form 8891 (prior years) or now on Form 8833.

[MarilynG1]

If you have a Canadian RRSP, enter it under Income > Retirement Plans and Social Security > Canadian Registered Pension Income.

Here's How to Delete Forms in TurboTax Online.  In TurboTax Desktop, go to FORMS > Open Form (type in 3520), > Delete Form (at bottom).

@rpromm