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Provide ability to e-file Form 1041 which includes Form 2439

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Provide ability to e-file Form 1041 which includes Form 2439

ProSeries only allows Form 2439 to be input to a paper filed Form 1041 through tax year 2019.  Since paper filed returns are extremely backed up especially because of COVID, it would greatly help if you would allow Form 1041 to be e-filed when a Form 2439 is included.

Thank you

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3 Comments
Level 15

Do you know that this a ProSeries limitation and not an IRS Mef one?

Level 15

Did you receive a critical diagnostic that the return can't be e-filed when there's input for F.2439?  Otherwise, my understanding is that you should be able to e-file provided you have entered all the e-file information on the input screen for each F.2439, including payer and taxpayer details, and the amount(s) from Line 2 of F.2439 will flow through to F.1041, Sch G, Line 16a.

If you still would like to attach Copy B, I'd think you can simply link the PDF to F.1041 rather than a specific schedule or line item.

Level 1

Thanks much for the comments.

1.  I don't know if it is a MEF limitation  because Intuit is recognized as a 2019 Form 1041 MEF provider.

2.  Also, yes I do receive a critical diagnostic that the return can't be e-filed when there's input for Form 2439.  When filing as a paper return, you're right that you can enter the undistributed long term capital gain on Schedule D as a Form 2439 gain in line 11a Smart Worksheet, and the withheld tax on Schedule G, Part II, line 16a.  You can then print it out and everything flows including the withheld tax payment to Page 1 of Form 1041.

When selecting the return as an e-filed return the errors show up as follows:

Schedule D highlighted in red:  "Line 11 requires one of the following forms for e-filing:  4684,6252,6781 or 8824"

The Information Worksheet gives the following message:  "Not eligible for electronic filling.  The program doesn't support Form 2439.  Pro-Series does not support this information to be e-filed".

To e-file I worked around the errors by overriding and attaching explanatory Statements to each of the overridden fields.  I could not however override Schedule G's line 16a, the line for Form 2439 payments.   Instead I simply put the amount in line 17 for total payments with an explanatory statement to this field.  Also I did include a PDF attachment of the Form 2439.

The return generated a Notice CP161 indicating the return had a balance due, which was not true when the Form 2439 payment was included.  After calling IRS at the number on the notice, the representative finally resolved the problem although he said the payment was not credited to the client account on the IRS' end!

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