Heads up to any other sole proprietors trying to use form 3468 to take solar tax credit

Forum|Forum|2 years ago
March 11, 2024
3 replies
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I am a sole proprietor with a rental property. I installed solar panels in 2023 and was instructed to claim the federal 30% credit using form 3468. Two issues have come up: First, TurboTax (Home and Business version) insists I put an IRS pre-registration number on line 2a, even though in fact I am not even eligible to apply for one since I don't have (or need) an EIN. Anyone come up with a workaround for this? (I saw a discussion thread about it among intuit tax professionals but no solution put forth.) Second, there seems to be a problem with TurboTax transferring the number from line 32 of form 3468 to Part III line 4a of form 3800--the number entered by TurboTax on form 3800 is double the number calculated and recorded on form 3468. My suspicion is that TurboTax is creating an extra identical copy of form 3468 and adding that to the original one. The reason I think this is that when I run the error check, it flags TWO errors on form 3468 about that first issue I mentioned, leaving line 2a blank. If I "fix" the error by entering a dummy number in line 2a, both error flags go away. I've been in touch with TurboTax customer service and they are "investigating" the issue about the incorrect credit on form 3800 issue and don't know when they will have an answer. They had no suggestion at all about the issue of requiring an IRS pre-authorization number on line 2a. I'm curious if anyone else has run into either of these issues and if you have found a solution.

TurboTax Home & Biz Windows

BTTinTally

I have an EIN and have tried to get the preregistration number but have had numerous issues with he IRS website saying the system is unavailable when I go to submit the form. I am considering submitting without the reapproval number and forcing it through the program that way and ignoring the error message. Thanks for the heads up on following the flow of the numbers to form 3800

Sam160Author

Good luck. I tried to get through to a live person at the IRS to talk to but there is apparently nobody available there to speak to live about the preregistration requirements and process. They could only direct me to what was supposed to be an interactive phone system but each time I was redirected there I heard the message that this service was no longer supported live.

CatinaT1

This is on the IRS Known Issues Report. There is a workaround provided for this issue. If you enter ""TMXXX99XXXXX" on Line 2a, this will allow you to e-file.

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BTTinTally

If the solar was for personal residence then you dont use 3468 There is another form used for that.

Sam160Author

Correct-this is for a business property though, not my personal residence.

pinhole-balboas-

The doubling the credit from the 3468 to the 3800 wll be fixed on the March 22.

I just filed by overriding the entry on form 3800 correcting it so it was no longer double. Turbotax let me efile, but then later rejected it with this message:

There is a potential issue with the calculation regarding Form 3800 General Business Credits.

We've identified the issue... it will be resolved in a release scheduled March 22, 2024.