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How to get past a critical error for a tax filer with "zero" income through FEIE/FTC?

HKPC
Level 2

We have run into a problem with expat tax filers whose returns are showing zero income (and refund amount) on their returns through the use of the foreign earned income exclusion and tax credits. If the client has a refund, we are able to e-file, but if the income shows zero (without a refund amount), we receive the following critical error:

"At least one of the following fields must be present on an e-file return: total income, adjusted gross income, tax on income, total credits, total tax, or total payments". 

Does anyone know a way around this issue? Or, will we have no choice but to paper file?

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5 Comments 5
BobKamman
Level 15

IRS has issued notices in specific cases (to qualify nonfilers for Section 6428 series refunds) allowing interest of $1 to be reported, to trick the system. I would take this as a warning that it should not be done in cases where not specifically permitted.

How difficult is it to reduce the amount of the foreign earned income exclusion by a few dollars so that there is positive AGI, but no tax? I am reminded of the case of a public figure who reduced an allowable credit or deduction so that the return would show $750 tax, when none was actually owed.

sjrcpa
Level 15

I enter $1 Other Income, with a description "to efile" in this situation.


Ex-AllStar
BobKamman
Level 15

I won't disagree with that.  But you could try to be more creative.  "Used anvil sales" maybe, or "recycled aluminum cans."  How about "found under sofa cushions" ?  Of course, depending on the part of the world, there would be some discussion of whether to use "couch" or "davenport."  Perhaps even "chesterfield."  

sjrcpa
Level 15

settee?

I'm an accountant. I'm not creative.


Ex-AllStar
HKPC
Level 2

Thanks for the various suggestions! 

Was hoping there was a checkbox or some other kind of software level workaround, but from your comments seems that is not the case.