Form 3468 for investment energy credit

[hgtc]

Client installed solar panels on rental property.  To get this investment energy credit, we use Form 3468.  However, on Form 3468, Part I, line 2a, there is "IRS-issued registration number" to be filled. 

My understanding is that since this taxpayer will not have elective payment election nor transfer credit,  he does not need to register with IRS first.  Am I correct?

Lacerte told me to disable e-file critical warming then e-file.  But, I still get e-file rejection.  Does anyone know how to handle this e-filing issue?  Thanks.

[TaxGuyBill]

You are correct, it is an Intuit error that they STILL have not fixed.

As for how to handle it (a) use non-Intuit software or (b) file an extension, complain again to Intuit and wait for them to fix it.

[hgtc]

Thanks for your input.  Guess we just have to wait...

[jharvey · Accepted solution]

This is actually an IRS issue, and not a software issue. If you look at https://www.irs.gov/e-file-providers/known-issues-and-solutions on row 29 of the 2023 Excel file, the IRS acknowledges this is an error with their e-file schema and they provide the following solution:

If you are claiming an investment credit and you are not making an elective payment election or transfer election for this credit, enter "TMXXX99XXXXX" on Part I, Line 2a.

[TaxGuyBill]

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@jharvey wrote:

This is actually an IRS issue, and not a software issue. If you look at https://www.irs.gov/e-file-providers/known-issues-and-solutions on row 29 of the 2023 Excel file, the IRS acknowledges this is an error with their e-file schema and they provide the following solution:

If you are claiming an investment credit and you are not making an elective payment election or transfer election for this credit, enter "TMXXX99XXXXX" on Part I, Line 2a.

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Thanks for that.

If only Intuit would pay attention and automatically enter that on line 2a.

[hgtc]

e-file went through.  Thanks.

[debkins]

That's great info, thank you!!

[gltcpa]

this thread is great, thanks so much for posting!  i just about gave up.  called Proseries support last week, got nowhere with tech support, a total waste of time. 

figured i would google one more time to see if anyone came up with a solution.  lo and behold, 8 hours ago someone posted here, thank you!!

very glad there is a workaround from IRS. last thing i need is an audit letter saying there is no such registration number in their system.  now if only Proseries would add a check box for "N/a" and insert that code if you aren't trying to transfer the investment credit. 

[Shortt5]

Thank you for your input this, I have been going around with this for hours trying to find out how to get past this error, and your solution worked...but now I am now having a problem with of where to input the solar purchase for a rental and have the credit populate to form 3500. I input the purchase basis in Part VI Energy Credit under Section 48, Section B but I have to override the % to get the credit on form 3468, the final total is correct on form 3468 but the credit on form 3500 is double.  Any input will be appreciated.  

I am using Pro Series.

Shortt5

[gltcpa]

@Shortt5you shouldn't have to override anything on 3468 to get the right % credit.  you need to make sure you answer all the questions above in Part I of 3468 in order for the 30% to populate automatically.  IRS expanded this form from like 3 to 12 pages this year or something crazy like that.  they now require all the information regarding the system (AC/DC watts, location, etc) and you need to answer the Yes/No questions to get the 30% back on solar.

also, i assume you are referring to form 3800, not 3500 for general business credit.  you do not need to to enter anything on 3800 either - once you have successfully filled out 3468 on Proseries, 3800 will populate automatically with the credit from 3468 and determine the max allowed for the year.

[Shortt5]

Thank you again...I have answered the questions I think correctly this time and the amount of the credit is calculated correctly (without override) and the total on form 3468 is the correct credit amount, but the credit on form 3800 worksheet Line 4a Investment Credit, Part VI (Form 3468) amount is double the 3468 amount. This credit will be carried over but is not being reported correctly on Form 3800.   This taxpayer also has the residential solar credit (Form 5695) and has carryovers.

Any suggestions.

Thank you again.

Shortt5

[gltcpa]

@Shortt5  did you try to right-click the number  on Form 3800 Line 30 and select Cross-Reference.  on mine it was automatically filled in with the solar credit from Part III of 3800.  there is no double counting or manual typing of the 3800 needed, so i'm not sure how else you can find the source of the doubling.  try the cross-reference and see if it shows up with the forms/areas the number is pulling from