Form 1040-NR filing rejection issue with form 1042-S data entry

[SueG3]

Form 1040-NR filing rejection issue: There is something wrong with the entry for form 1042-S. I get the following "Filing Rejected" message and cannot see where there is anything wrong. The TIN/EIN for the withholding agent is correct (same as used for filing the 2018 and 2019 returns which were both e-filed with no rejection). The taxpayer is receiving a huge refund and I do not want to have to paper file as he will then have to wait significantly longer to receive that refund. Please look at the software and see if there is a fix.

Filing Rejected - This filing was rejected by the taxing agency on August 26, 2021. You need to fix errors that caused the rejection before it can be accepted by the agency. Follow these instructions for fixing the errors and you can transmit again at no additional charge. Reject: Error /Return/ReturnData/IRS1042S/WithholdingAgentGrp/Chapter3StatusCd: Data in the filing is missing or invalid. Please double check your entries. Form: 0(00) Field: (/Return/ReturnData/IRS1042S/WithholdingAgentGrp/Chapter3StatusCd)

[joshuabarksatlcs]

I 've never run into an error like this for my 1040-NR.

Without seeing your 1042-S input, it'd be hard to pinpoint the problem.  These are general suggestions:

1.  Check your diagnostics.  Did it show any issues?  (I'm referring to the diagnostics and not the e-filing error) .

2  Contact Lacerte support and do a Smartlook.  

Good luck.

[SueG3]

There were no diagnostics at all.  I contacted support ant the only solution they could give me was to paper file.  Ridiculous!

[qbteachmt]

"There is something wrong with the entry for form 1042-S."

This is a Suggestions box for enhancements. You might want to post in the open forum, if you need more help. It doesn't hurt to read the IRS instructions and that would help you better describe what is the problem. "Something wrong" isn't going to be resolved by your peer users without more details.

[joshuabarksatlcs]

Again, I don't have a similar problem and I don't know what you're entered in Screen 58.2.

I have been e-filing 1040-NR's with no problem.   Knock on wood.

In all fairness, this problem could be on the IRS end and not Lacerte end - during the e-filing process.   In other words, there's a problem during the process when the info was submitted to the IRS.  Otherwise, Lacerte would have issued some kind of diagnostics.  Lacerte may not even know what the problem is unless it works with the IRS.  In an ideal world, this would be done, but lately have you tried to resolve a problem with the IRS?

[BattleCat]

@SueG3 I am getting the same eFile Rejection issue. Did you ever find a solution or did you paper file instead? Thanks! 

[IntuitGabiU]

@SueG3 @BattleCat Is this rejection code F1040NR-027-02? 

Are wages entered both on a W-2, as well as a 1042-S? 
1042-S instructions "Do not use Form 1042-S to report an item required to be reported on any of the following forms: ", including W-2.  As a result, the two ways to resolve this issue would be to either remove the 1042-S, or to remove the W-2 and report the income in another manner (such as screen 14.1 Other Income). 

I may be off but it was worth a callout. 

[BattleCat]

Thanks @IntuitGabiU . 

The only inputs are the two 1042-S and then income inputs on Screen 14.1 "Other Income" and Screen 18 Schedule E. 

We filed in the same manner for TY19 without issue. 

Any other suggestions or can I provide any other details? Thank you! 

[BattleCat]

Figured out our issue. The Withholding Agent that filled out the Form 1042-S used a Chapter 3 status code (Box 12b) that is no longer valid ("02"). I updated the code and the return was accepted. 

[IntuitGabiU]

Thanks for reporting back, @BattleCat! Happy filing!