Tax Year Prior to 2020: Unable to efile due to QBI Deduction Worksheet Schedule B

[HoriTT]

@apuaar00 wrote: 

"That is a great suggestion. Where do you mail the safe harbor statement?"

You would mail it to the address specified in the filing instructions of the tax return generated using the file by mail option.

Has anyone else seen the same issue with the 8995-A form not having part 1c (check if aggregation) box checked even though they aggregated, when electing the safe harbor option? Is that a bug or does that box need to be unchecked when electing the safe harbor option even when the properties are aggregated?

[DougM]

Hey Intuit/TT,

Any update on whether this e-filing problem is going to be fixed?  Presumably you know if it's on the list of bugs or not. Can you tell us what to expect so that we can decide what to do?

Doug

[AkinaLO]

Please contact TurboTax support to discuss this issue if you still need assistance.

What is the TurboTax phone number?

[chris_vandoren]

You're suggesting the the best way to get an answer on this is to call in and ask a random front line customer service person about this???  Wouldn't it be better to get an update from someone who is familiar with the problem so everyone who is tracking this thread can see where we are???  Maybe?

I have been waiting now for 60 days to file and get my $7,000 refund while TT offers no explanation as to why the problem they fixed last year has cropped up again in this year's software.  Can TT loan me the $7,000 while I wait for them to fix this again?

[DM26]

I can no longer wait.  TurboTax doesn’t give a Sh** about this issue and doesn’t even have the decency to indicate whether they are working on a fix or not.  The so called “Tax Experts” who have posted every now and then also simply ignore this.  It’s quite apparent they are far from Tax Experts anyway and simply a name provided so people mistakenly have more confidence in them.  I’ve done a little research and from what I understand TaxSlayer allows e-filing with the safe harbor statement.  If anyone knows of other software please post.

[apuaar00]

Are you doing the software download version or online version. I looked into it but looks like TaxSlayer does software version only for professionals. Just wanted to confirm. 

[DM26]

I do not have a complete understanding as to what TaxSlayer offers but it came up when I was searching for e-filing with the Safe Harbor attachment.  I didn't see any indication that is was strictly for tax professionals. I was going to call them on Monday to get more information.  I believe they offer similar products like TurboTax and H&R Block and also believe that tax preparation is done online on their website and is saved within your online account with them.  Below is copied and pasted from their website showing the different versions:

Simply Free

For those with a simple tax situation. Includes one free state return.

Learn more

$0

 State included

FILE FOR FREE

Classic

All tax situations. The absolute best value for your max refund.

Learn more

$24.95

 States additional

START FOR FREE

Premium

Skip-the-line phone & email support. Plus live chat and Ask a Tax Pro.

Learn more

$44.95

 States additional

START FOR FREE

Self-Employed

Best for contractors, 1099ers, side hustlers, and the self-employed.​

Learn more

$54.95

 States additional

[DM26]

After contacting TaxSlayer unfortunately it seems that they do not allow e-filing with an attached Safe harbor statement with their general software.  I have since learned that the online information I previously found was based on their “TaxSlayer Pro” software used by professionals.  Does anyone know of non-professional tax software that will allow e-filing with attaching a Safe Harbor statement?

[tagteam]

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@DM26 wrote:

....Does anyone know of non-professional tax software that will allow e-filing with attaching a Safe Harbor statement?

---

There are really only two other options with respect to non-professional software; H&R Block and TaxAct. 

You can check out those two vendors but it is doubtful they will allow e-filing attached statements (as opposed to IRS forms and schedules) either.

[Triman]

I agree with DM26.  This is irresponsible on the part of TurboTax,  and based on their actions they don't seem to care.

[rchen404]

DM26,

I use Turbotax Business (not home and business) to file partnership taxes.  There is a form that requires a signature (8453-PE). Turbotax business allows users to print to pdf, sign, then scan or take a picture to upload.  This procedure would work for the QBI safe harbor as well.  There is no reason turbotax isn't able to do it beyond laziness, lack of competition, and incompetence.

[DM26]

I already own H&R Block and they do not support.  I previously contacted support for TaxAct and am still waiting on an answer. 

A further option is freefillableforms.com which is the IRS's website that allows filling in the forms and e-filing.  If someone already has their return prepared through TurboTax or other software they can fill-in all forms on this website and then e-file.  They have forms 8995 as well as Schedule A, B, C & D (form 8995-A).  They don't seem to have a safe harbor statement but they do have form 8275 which is allows a disclosure statement where I believe you can add in the Safe Harbor affirmation statement. 

Form 8275, Disclosure Statement, is used to disclose items or tax positions that aren’t otherwise adequately disclosed on a tax return.

One thing that is confusing is why these software programs can't just accept the Rental Enterprise Safe Harbor statement without a signature.  This way there is no need to have to separately attach it.  It is my understanding that the requirement to sign the Safe Harbor statement was eliminated with Rev. Proc. 2019-38. Below is a summary I found online regarding the changes made with Rev. Proc. 2019-38.

The determination as to whether a rental real estate enterprise rises to the level of a trade or business under section 162 is difficult, and in many cases unclear. But, it is critical when assessing whether rental real estate activities will qualify for the new 20% section 199A deduction.  

To address these uncertainties, the IRS previously released Notice 2019-07, which provided a proposed safe harbor under which a rental real estate enterprise would qualify as a trade or business solely for purposes of section 199A. The IRS finalized this guidance on Sept. 24, 2019 with the release of Rev. Proc. 2019-38. While substantially similar to Notice 2019-07, the new revenue procedure does deviate in some notable areas

1. Performance of 250 or more hours of rental services – for a rental real estate enterprise in existence for at least four years, at least 250 hours of rental services must have been performed annually in any three of the five preceding tax years. For enterprises that have been in existence less than four years, the hour requirement must be satisfied in the tax year under consideration.
2. Triple net leases – the safe harbor is not available to triple net lease arrangements. Under the new guidance, a triple net lease is defined to include a lease that requires the tenant to pay taxes, fees and insurance and to pay for maintenance activities, in addition to rent and utilities. The previous guidance defined triple net leases in a similar manner, but referenced lease agreements where the tenant was responsible for maintenance activities. The revised guidance clarifies that the key factor is who pays for those activities.
3. Maintenance of separate books and records – for each rental real estate enterprise, the enterprise must maintain separate books and records. If an enterprise consists of more than one property, this requirement may be satisfied if books and records are maintained for each property and are subsequently consolidated.
4. Maintenance of contemporaneous records of rental activities – the enterprise must maintain contemporaneous records documenting the hours, description and dates of all services performed, as well as who performed the services. This requirement is now applicable to tax years beginning after Dec. 31, 2019.
5. Attachment to the taxpayer’s timely filed tax return – a taxpayer relying on Rev. Proc. 2019-38 must attach a statement to the return that describes all rental real estate properties included in each rental real estate enterprise for each taxable year in which the taxpayer relies on the safe harbor.
6. Taxpayer signature - The revenue procedure eliminates the previous requirement that the taxpayer sign, under penalty of perjury, a statement confirming that all requirements of the safe harbor have been satisfied.

[DM26]

I'm following up on the question as to what individual tax software allows a Safe Harbor PDF attachment.  I just received a response from Tax Act and unfortunately it appears they only allow PDF attachments for certain purposes as follows:

https://www.taxact.com/support/[social security number removed]/e-filing-attaching-a-scanned-pdf-doc...

E-Filing - Attaching a Scanned PDF Document

TaxAct® supports the ability to attach certain documentation to your Federal and/or State tax return.

You can attach a PDF document to your Federal return only in the following situations:

• Form 8949 Sales and Other Dispositions of Capital Assets summary totals entered for stock transactions
• Form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts, Part II, Boxes A or B selected - optional attachments
• Child was born and died in 2020 and did not have a Social Security Number (SSN) issued. In which case, you would type "DIED" instead of entering an SSN for that child in the Basic Info section of the Q&A.
  Note. If the child did have an SSN, there would be no need to attach a copy of the child's birth certificate, death certificate, or hospital records showing a live birth.

Many states allow or require taxpayers to attach a PDF of supporting documentation to an electronically filed state return. If any of these situations apply to your return, you will be prompted to attach the documentation during the e-filing steps.

Note. The attachment(s) MUST be saved as a PDF before attaching to your return. The Attachment Manager will not accept any other file types; you must upload a PDF.

Note. To help prevent malicious uploads, we have strict requirements for our PDF standard. If you receive an error when trying to upload your PDF, it most likely does not meet the standard. Using a PDF writer should ensure the file does meet the PDF standard.

The PDF writer will appear to your computer as a printer, but instead of printing on a sheet of paper, it will create a PDF file image of your return. Once the PDF file is created, you can view the document in your PDF viewer, select "Print", then select your printer as the destination.

If you don't have a PDF writer already installed on your computer, the CutePDF Writer is a free program.

How to Access Attachment Manager

To access the Attachment Manager within your TaxAct return:

1. From within your TaxAct return (Online or Desktop), click Filing to expand, then click E-file My Return. On smaller devices, click  in the upper left-hand corner, then click Filing.
2. Select the return(s) you would like to submit, then click Continue.
3. Click I Agree, then click Continue.
4. On the screen titled E-Filing - Attachments to Return, click Attach Documents.
5. In the window that appears, click Add on the attachment(s) you want to include with your return.
6. Make the appropriate selections on the next screen, then click Browse .
7. Locate the PDF within your computer files, then click Open which should bring you back to the Attachment Manager.
8. Click Finish, then click Close when you are done attaching the documents (If you need to delete a document you've already attached, there will be an option within the Attachment Manager to do so.)
9. Continue through the rest of the e-filing steps to submit your return.

[apuaar00]

Yes on careful reading it does seem like the requirement for the taxpayer to sign the safe harbor statement has been eliminated in the new Rev. Proc.2019-38

Hence most software are not even requiring it for e-filing the tax return. 

[minzhu1987]

Thanks a lot for the info! Could you please point to the link to purchase and use the Turbotax Business edition? Does it support porting the data from my current Turbotax Premier version? Thanks!