53383

[#1]

The following diagnostic is generating: The program does not support Form 8978 for federal efile. This return must be filed as a conventional paper return (ref. #53383). I suggest Lacerte put this issue high on their agenda of input from form 8978 (input at screen 45.3 - Partner's audit liability under section 6226 (8978) - a positive number for amount due and a negative amount for refund claim. Amounts carry to Sched 3 of form 1040 As result of BBA, partnerships will be pushing out adjustments on form 8986, which is used to generate amounts for form 8978 - this will become quite common in the future - I believe CCH tax products allow efile for this situation

[johncallagy]

Good question - I considered doing a "disable e-file error" override, but because the return extension date was approaching, we paper filed 2022 federal personal returns with the forms 8978.  I could not get an answer from Lacerte support, so I followed the program's suggestion to paper file the return.

Subsequently, another CPA firm I know, using Intuit ProSeries, did attach the form 8978 and efiled their client's 2022 form 1040 with the attachment.  

So my guess is the "disable e-file error" and attaching the form 8978 may have worked with Lacerte.  

Hopefully Lacerte will provide guidance for this issue in 2023.

[Continuouslearner]

Thank you for replying, Johncallagy. I do know one ProSeries user who was so frustrated that they just mailed it in, but it is good to know another CPA firm was able to e-file in ProSeries with the attachment and presumably with the disable e-file error mechanism. 

Yes, Lacerte should be providing more guidance for 2023, as well as the IRS for that matter. More of these filings will be needed for 2023.