Form 8938: Line 7 and line 8 cannot be entered on the same foreign asset

Forum|Forum|2 years ago
May 17, 2023
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After fixing a 1099-INT import error thanks to @dmertz, only one obstacle remains before e-filing:

TurboTax 2022 (online) claims that:

"Form 8938 -- 8938 Cont Stmt (COPY 7): Foreign entity or issuer/counterparty information should not both be entered. Line 7 and line 8 cannot be entered on the same foreign asset."

TurboTax offers to fix this by changing the name of the Foreign Entity, but AFAIK it is correct (that is how I e-filed last year without any error) and pointing to line 35a may be a "red herring".

Any idea which line 7 and line 8 is TurboTax referring to?

Lines 7,8 in Form 8938 (the form in which this error is reported) refer to:
7. Number of custodial accounts (reported in Part V) .
8. Maximum value of all custodial accounts
which I properly left blank.

So, I don't understand which lines 7 and 8 TurboTax is referring to.

BTW, I compared COPY 7 (the one about which TurboTax complains) to COPY 5. They are identical except for the "Description of asset" (line 29) and ID (line 30). But TurboTax complains about COPY 7 only. Weird.

Any help on the way to fixing this would be greatly appreciated.

Thank you

TurboTax Deluxe Online

Best answer by dbe2022

It turns out that last year, the same exact issue was reported -- without a solution:
https://ttlc.intuit.com/community/taxes/discussion/issue-with-form-8938-for-2021-foreign-entity-or-issuer-counterparty-information-should-not-be-both/01/2484674#M889123

I managed to workaround it by going again to Form 8938's entire interview process (there is no way to directly edit the forms), not modify anything, just click continue, continue, etc. until done.

This appears to have worked around the bug, because immediately after that, TurboTax took me to e-file, sent it to the IRS, and 29 minutes later I received another email from `TurboTax at Intuit` that "Your federal tax return was accepted by the IRS".

All is well now. 😊

dbe2022AuthorAnswer

Macrel

I have this issue in 2025. I have tried going thru the whole 'Interest and Dividends' section, guiding me through, but the error remains. In my case it is on copy 3 of 6. I had to delete the form and re-enter it.