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Solved

E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

Forum|Forum|5 years ago
February 21, 2021
59 replies
0 views

My federal e-file that I did yesterday (2/20/21) was rejected this morning (2/21/21) with the following message: "We encountered an issue processing your e-filed return. Please review the "ForeignTaxesPaidOrAccruedDt" on Form "1116" in the section "ForeignTaxCreditSource"."

All of my foreign taxes are on mutual funds held in a Vanguard brokerage account, so my numbers/data are coming from the Vanguard 1099-DIV.

I have run through the Foreign Tax Credit flow again and can't find anything to change/correct; I am ending up with the exact same results as before. In particular the date paid section looks correct, with the "paid" box checked (rather than accrued) and a date of 12/31/2020.

The only thing I was slightly uncertain about is that yesterday when it did the final review it asked me for "Qual Div and LT Cap Gains" for the foreign tax credit worksheet (and said this had to be greater than $0). I entered the "QDI eligible foreign income" value from the "2020 Foreign Tax Paid" section of my 1099-DIV. I am not certain this correct but do not see what other value would be appropriate to enter here. However, I also don't see how this would be related to the error message above.

I am wondering if this is a bug in TurboTax, as I had a similar experience last year where it was rejected due to a bug on their end, and had to wait until they had fixed the issue in order for it to get accepted.

Has anyone else encountered this? Or can advise on how to resolve it?

TurboTax Premier Online

Best answer by hongcho

A locally installed TT does not let you change the 1116 ATM date field and e-file (only print). When using simplified vs non-simplified, the difference seen on the 1116 ATM form is the data in column A (which includes the date). And... at least with a locally installed TT, I attempted to e-file at least a dozen times before it finally went through (using incorrect data that I plan to amend when this is fixed).

Turbo tax is making huge engineering, support, and PR mistakes here. I told them in this thread and on the phone within days of the forms being available (February) that this is going to affect, potentially, every customer filing a 1116 form and that it needs to be escalated and fixed NOW. I guess I was brushed off as being dramatic. I guess it is time to leave an amazon review.

I tried it again today. TurboTax (Windows) had an update.

This time, when I tried to e-file, TurboTax itself is rejecting it saying

"We Won't Be Able to E-file Your Return

"It looks like you have a form or tax situation in your federal return that TurboTax doesn't support for e-filing. We do support it for filing by mail.

"Here are the details:

"You elected the simplified AMT Foreign Tax Credit limitation. Print the return and file by mail.

"Don't worry, even though you are unable to e-file your return, we'll still help you file your return by mail."

So, it seems TurboTax gave up (?) on the simplified AMT Foreign Tax Credit limitation.

I am really tempted to change this.

Show previous replies

Fossil

I downloaded the TurboTax update that was released this morning and e-filed my return again. And again it was rejected for the same reason. I don't know why I was surprised that it was rejected -- I guess I keep thinking that they know there is a problem and will fix it.

Djszabo

Try going into Forms. Find the 1116 Form. Go the Part II. Under the Country column, my system was using the word "various". I changed this to 12/31/20. The submission then worked. Looks like there is a bug in either TT or the IRS system where only a date format is acceptable in that column Good luck.

gregpu

@Djszabo How did you get it to take the date in the format mm/dd/yy? When I go into Forms view and try to change the date it keeps forcing me to use mm/dd/yyyy. I am using TurboTax Premier download version.

Taxpayer61

I have two copies of From 1116. The first is for some ETF dividends from two different brokerage accounts (spouse and mine). They are combined in Column A. This is the larger of the two. The second is a small amount from an MLP. The MLP had the tax accrued with a date of 12/31/2020. The first had the tax paid with a date of various. Kept getting rejected within five minutes. I changed the various date to 12/31/2020. So far, 30 minutes in, I haven't been rejected. I hope that is the end of this problem for me, and that this works for others.

Djszabo

Changing various to a date solved my problem as well.

Click

Employee

Just following up with what worked* for me. I entered paid date of 12/31/2020 on the 1116 worksheet. No override needed, and I thought you couldn't have any overrides if you were efiling. This was after applying the 2/27/2020 program update. In years past, I used Various and that is what appears on the printed out form for filing.

What makes this a bit hard to follow is that Turbotax doesn't show you the actual Form 1116 when in Forms View. You have to "print" the form to a PDF to see exactly what the form would look like. Further, I read somewhere that while Various is appropriate to use if paid on different dates and that can be used for paper filing, Turbotax is supposed to convert it to the last date of the tax year if efiling. And that may be the piece that isn't working.

* I should note that my return has yet to be accepted, but it was no longer being rejected for the reason cited in this thread. It still has a similarly mysterious issue with a non-existent inherited IRA which is subject of another thread.

Clairezhuzhu

I spent over 2 hours talking to three different people from the custom support and none of them seem to be aware of such issue, which surprised me given this thread was post a week ago and followed by so many of us also experienced the same error.

Now I am really just hoping they are working on resolving this issue for us.

AlwaysOnTheRoad

Per the accountant thread.

You don't need to report income
passed through from a mutual
fund or other regulated
investment company (RIC) on a
country-by-country basis. Total all
income, in the applicable category,
passed through from the mutual fund or
other RIC and enter the total in a single
column in Part I. Enter “RIC” on line i.

I changed Various to RIC. This also required checking the box that income was from a mutual fund on the 1099-DIV worksheet Box 8.

Resubmitted and it was REJECTED.

dschreib

Piling on here, I have the same issue with Form 1116, I keep going through the interview and trying different options, but it's been rejected by the IRS 4 times now.

I called TT support and they said to clear the cache or try a different browser, but that didn't work.

It does seem like an issue TT could fix, even if it's a change on the IRS end that caused it. Surely there are thousands of users using Form 1116 that is affected.

Fossil

My e-file was finally accepted this morning. I noticed earlier posts in this thread that the Form 1116 AMT might be causing the problem. We haven't had to pay AMT since I retired. Several years ago our return was flagged by the IRS and they asked for a Form 6251 to be submitted. Since I didn't owe AMT, nothing further happened. But ever since then, I have always checked the box to submit the 6251 even though not required to avoid IRS questions.

This year's return has been repeatedly rejected. The only thing I did this time was to uncheck the box to submit the 6251, which also deleted the 1116 AMT form, and it was accepted. I'll have to see if the IRS later requests the 6251.

chappavarapu

Update:

I filed my taxes last night without any modifications after being rejected 4 times a few days ago. Looks like whatever was the problem with Form 1116 is now fixed either on TT or IRS side. I used TurboTax online tool.

AlwaysOnTheRoad

Tried again. Still rejected.

Clairezhuzhu

The Country column still shows as empty in 1116 AMT, despite the fact that in 1116, it has the correct country info. Hoping Turbotax can address this soon so we can e-file.

krautax

Had the same rejection (as many). After many failed tries, I got it accepted after I filled in the date field in Part II (l) under country A. That seemed to have done the trick at least in my case....

sidjain78

I had the same issue and this board's suggestion helped me. I changed from 'simplified method' to 'other calculation', answered some extra questions. When I re-transmitted the tax return, it went through smoothly. This simple calculation option has a glitch.

fgdfgdfg

I changed from 'simplified method' to 'other calculation' did it for me as well! Thank you very much.

rabenko

I have run into the exact same problem with foreign taxes related to my two Vanguard international funds. Same error message, and the same experience trying to find something to correct. It seems that all of the necessary data is on the 1099-DIV so I'm not sure why we are having this problem. Last year I was able to get the foreign tax credit processed and e-filed successfully. I am trying to get some online help with this, but it hasn't worked out so far. I may have to just mail them in, but I'd prefer to e-file. Maybe this is a Turbo tax bug.

rabenko

I read this entire string regarding the Foreign Tax Credit issues & suggestions. I went back to the Form 1116 work sheet - Part 1, and listed each of my 3 Vanguard international funds in its own column, starting from largest to smallest foreign income source. (Ex. Col A=largest foreign income source, Col B=intermediate amt, Col C with the smallest income source). I set the Country for all columns to "RIC". In Part II, "Date Paid or Accrued" was set to the last date listed for each fund on the 1099-DIV. In my case it was 12/21/2020. After those changes, I ran TT review again with no errors found. I have e-filed for the 3rd time, and so far it has been 45 minutes with NO rejection! I will check again tomorrow morning to see if my FED return was accepted, but right now it is looking promising! Thanks to all who provided pieces of the puzzle! I think this did the trick!

AlwaysOnTheRoad

Does not work for me. Still rejected. Did you have an AMT Carryover which many have identified as a problem area?

blaze2

Employee

I have the same problem. Mine is also rejected with the same error message.

gg1961

Same problem here

I just have foreign income and E-file is rejected as per the title of the thread:

/Return/ReturnData/IRS1116/ForeignTaxCreditSource/ForeignTaxesPaidOrAccruedDt
- date is correct as 12/31/2020 in 1116 exactly the same as last year.
- format of all fields on 1116 (standard and AMT) looks exactly the same as last year.
I don't import any data - all just manually entered in Turbotax Premier
And I don't want to have to ask the IRS to stop doing simplified AMT method.

Pjjameso

Gave up on waiting for simplified fix, converted to other option and return was accepted. Only change in figures I noticed was a smaller amt carryover value. However not subject to amt so doesn’t really matter.