TurboTax Business 2025 Desktop - Unable To Transmit California Fiduciary Return (form 541)

[user17736315102]

Hello, using TurboTax Business 2025 Desktop (Windows) today 3/15/26, I was finally able to transmit the Federal Return (form 1041) successfully, but the California Fiduciary Return (form 541) still fails transmitting; it always reports Error Code 54, even after trying all recommended fixes (installing the TurboTax Business 2025 Super Patch; checking for updates; restarting Windows; clearing the browser cache). The problem is identical on two different PC's, one running Windows 11 and one running Windows 10 (where it is still OK to use TT Business 2025).  Intuit, is there another possible fix in the works specifically for California Form 541 transmission failures?

[PatriciaV]

This is a known issue in TurboTax and we are working to resolve it as soon as possible. As soon as we have a resolution for you, we will update you in this Community thread.

[JamesG1]

This is a known issue in TurboTax.  We believe that the issue has been resolved in an update this date.

[user17736315102]

I finally had a SUCCESSFUL TRANSMIT of California Fiduciary return (form 541) for a Trust this afternoon.  I DM'd with TurboTax support via Facebook the past two days - they were somewhat helpful and very responsive, but in the end they said that California returns that include Schedule K-1 "cannot be e-filed."  This is FALSE; it worked fine the past two years. If the rep was implying "cannot be e-filed" this year (because of a bug), that was not clear.  I got better support from Google's AI (gemini.google.com), where its latest response confirmed the "cannot be -efiled" statement is generally false, and it recommended reviewing the Federal form 1041 where Interest and Dividends for the Trust are entered.  I stepped though this and subsequent forms again (for the umpteenth time), then tried to transmit again -- this time it worked.  There is nothing that I saw that needed to be fixed, so the reason for success this time was not clear.  Perhaps Intuit and/or the CA FTB finally got their bug fixed since earlier today.

[tpmonroe]

Is TurboTax working on a fix for the error message regarding Form 541 Sch B Line 15 Income Distribution deduction?   When line 13 is negative number, Turbo tax is incorrectly showing an error for line 15.  The 1041 form has the same data for lines 13-15 but no error message comes up.  Thanks 

[kentca1]

I am having the same problem - unable to e-file CA Form 541.  The e-file is rejected but TurboTax says there is no error in the return. How does one proceed from here?

[PatriciaV]

Please provide the exact e-file rejection message you are seeing. Also, which version of TurboTax are you using? Online or Desktop?

@tpmonroe 

@kentca1 

[kentca1]

I am using TurboTax Business Desktop to file an estate tax return for CA (Form 541). After e-filing the CA return, I receive an email from Intuit saying the state has rejected the submission but there was no error code from CA and TurboTax Business says there are no errors in the return. 

After spending couple days on this issue & trying all the suggestions (turn off VPN, super patch, run as administrator, clear cache, ...), I was able to e-file CA Form 541 successfully. The issue is a s/w bug in TurboTax Business. On Form 541 line 45 with the box for Form 5805 checked, TurboTax left the entry blank. The correct entry is to transfer the value from Form 5805 line 13 to Form 541 line 45. After I manually entered the value on Form 541 line 45, then the the tax return was successfully e-filed. 

[PatriciaV]

Thank you for this information and that you were able to successfully e-file your CA return. 

In order to forward your comments to our development team, it would be helpful to have a TurboTax ".tax2025" file that has experienced this issue. If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

1. Open your return and go to Online in the top menu, then choose "Send Tax File to Agent." On a Mac computer, choose Share or Help >> Send to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
3. Reply to this thread with a screenshot of your Token number (this avoids Community filters for numbers with a dash) and tag (@) the Expert requesting the token from you.
4. Please include any additional States that are part of your return.

@kentca1

@tpmonroe