Schedule K-1 Form 1065 Box 20 Code AJ seems to require form 3468 which is not applicable for a none oil/gas/energy businesses.

[Dibert]

Code AJ is for "Aggregate Business Activity Total Deductions".  Turbotax seems to be struggling with form as it was held up for filing until now.   Then it was held up again due to a problem with K-1 line 20 code AJ.  Now that is fixed but it seems that Form 3468 should not even be needed for a none oil/gas/energy business.

K-1 line 20 code AJ seems to trigger form "K1P Additional Info 1" and Form 3468.  On "K1P Additional Info 1" I entered "Aggregate Business Activity Total Deductions" in line 6 under "Other" as it is not coal/gas/energy.

I can fill out form 3468 and say everything is "Not Applicable", but it still requires line 2a: "IRS-issued registration number", and that doesn't exist as the LLC has nothing to do with oil,  gas, or energy.

[PatriciaV]

The incorrect identification of Box 20 Code AG/AJ will be addressed in a forthcoming update. We recommend signing up to be notified when the update is released: Why am I receiving an error in TurboTax for Schedule K-1 Box 20 when code AJ is selected?

However, since this information will be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return), you have the option to omit the code and the amount(s) from Schedule K-1.

[jerryboda]

I'm wondering how long an update will take for this issue to be resolved.  Seem like many have reported similar issues related to the Box 20 Code AJ requiring form 3468 some time ago so I'm wondering how we can track an ETA.  It would be nice to see problems identified and get a timeline for all ETAs on resolution so we can track progress.  It would be nice if a link for resolutions was on the software under HELP at the top.

[BrettS18]

Link is broken

[jerryboda]

Removing code in Box 20 AJ did NOT fix the problem. It still generates the additional form which is not required for oil and gas partnerships (that do not  qualify for tax credits ).  

[jerryboda]

Your suggestion does NOT work.  You said "you have the option to omit the code and the amount(s) from Schedule K-1."   I did two things:   1) I removed the amount in Box 20 Code AJ, then went back and deleted Form 3468.  I my case I own two Oil and Gas Partnerships, so I did this for each partnership.  After doing so, it still insists on me filling out a Form 3468 for each Partnership.  You'd think by editing and removing any amounts on Box 20 Code AJ that it would stop requesting that I apply for a tax credit (that doesn't apply to me) and fill out a Form 3468

[pa68]

I also tried yesterday to omit the code and amount from my k1 and still receive the same errors.

[PatriciaV]

If you are using TurboTax for Desktop and can use Forms Mode:

Check K-1 Partner for this entity. Make sure there are no entries for Form 3468 under Part III Credits.

Open Form 3468. Delete anything in the Description box. Review the entire form to be sure there are no other entries. Then delete Form 3468 if it is still on the forms list (usually this removes the form automatically).

@jerryboda 

@pa68 

@BrettS18 

@Dibert 

[jerryboda]

I did exactly what you just suggested step by step.  I removed Box 20, AJ amount on the K-1.  On Form 3468 I had to "override" the amount coming from Box 20, AJ to make sure I could clear all items on Form 3468.   The K-1 Additional Info had the same info so I had to check a box that said "Do not generate Form 3468 so I checked that box.   I thought it was going to finally work but when I run the "RUN FINAL REVIEW" it generates Form 3468 all over again.  The form is completely blank now that I deleted all information on it on Part 1, items 6 thru 14 it wants me to answer 13 questions that are highlighted in Pink color.

[Dibert]

I checked form 3468 and it is empty and not showing on the forms list, yet Federal smartcheck gives me 11 errors all saying there is no entry.  I could say NA on the 3468 form for everything, yet the Facility Registration number is required.   Turbo Tax prompts up front if this is a gas/oil LLC, and I said No, but I wonder if that is the problem where whatever "no" does is not taking effect.   We've been stuck for weeks now.  Can we try another strategy?  Thank you!

[PatriciaV]

It would be helpful to have a TurboTax ".tax2023" file to test further.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose File >> Share.)

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear. 
3. Reply to this thread with your Token number and tag (@) the Expert requesting the token from you. Please include any States that are part of your return. 

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

@jerryboda 

@Dibert 

[meisling]

TOKEN #1213404

Patricia V.

I am not the originator of the thread but I too am not able to escape the requirement for the inapplicable form 3468.  My TurboTax software updated yesterday 3/18/24.

[PatriciaV]

@meisling Thanks for the token. It may be a few days before we have a response.

[PatriciaV]

You should be able to resolve this and delete Form 3468 as follows:

1. Return to the K-1 Summary page.
2. Edit the first Schedule K-1 Box 17. 
3. Enter only one line for Code AJ and do not enter an amount.
4. Continue to the page that asks for Other Information Detail (which may remain as you entered it before). Enter a description and amount separately for both lines from Code AJ.
5. Continue back to the K-1 Summary page and repeat these steps for the second K-1.
6. Run Review/SmartCheck.
7. If you receive a request for the registration number, enter TMXXX99XXXXX. 
8. Delete Form 3468 (either in Forms Mode using TurboTax for Desktop or using Tools >> Delete a form in TurboTax Online).
9. Run Review/SmartCheck to confirm the error has been resolved.

These steps are easier if you are using TurboTax for Desktop, as you can make edits directly in the forms and easily see what forms have errors (red exclamation marks). But it can be done in TurboTax Online.

@meisling 

Additional Information:

• How do I view and delete forms in TurboTax Online?
• How do I delete a tax form in the TurboTax CD/Download software?

[Dibert]

That did not work.  All it did was to give me another error that line 17 needed a number.

What did work is I entered TMXXX99XXXXX in the form 3468, then checked everything NA, then SmartCheck worked.  Then I removed form 3468 and the Smartcheck still worked.