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[#1]

The following diagnostic is generating: Contract and Straddles (Form 6781) aare not allowed for Electronic filing on the Schedule D . I am getting this Critical Diag on a Trust tax return. I had same form on 2020 return, but with out the diagnostic. 2020 return was successfully efiled with this form. What has changed?

[sjrcpa]

Doesn't CA mandate efiling?

Or not for trusts.

[gavin_mdp]

E-filing is not required for California estates or trusts.  From the Form 541 instructions:

e-filing – The FTB offers e-filing for fiduciaries filing Form 541, California Fiduciary Income Tax Return. Check with the software provider to see if they support fiduciary (estate or trust) e-filing.

Even if it were, you would have reasonable cause for not e-filing.