Form 8978

[OldCPA]

I have a return that requires attaching the form 8978 & Form 8978 Schedule A.  Says that the return has to be paper filed.  

Has anyone been able to attach all the required documentation as a PDF so the return can be efiled?

Or did the attached documentation get included & the critical diagnostic bypassed?

[PhoebeRoberts · Accepted solution]

Is that the "I got what would have been an amended K-1 under the old rules" form? Indeed! Worst form ever.

The diagnostic says pretty clearly that Lacerte doesn't support the form in a way that will pass the IRS e-file specs. If the IRS check is [if Form 1040 Line 16 Box 3 includes "FORM 8978" then the xml must include a Form 8978], then the return will reject at the IRS level. If you change that notation, the return will look like you ignored the 8978 tax and like your client was agreeing to owing some entirely different type of tax.

[OldCPA]

I kinda thought it wouldn't pass but was hoping against hope I was wrong.

So I have 3 returns that have this dumb adjustment.  The adjustment amount is minimal but if I don't do it and they get a nasty letter then I look even more stupid.

Thanks for your quick response!

[PhoebeRoberts]

Exactly how I feel about it - it's a huge hassle and the only thing accomplished is that I look less stupid!

[Layah]

How did you tell the program that you needed to attach form 8978? I don't even see how to input that information.

[PhoebeRoberts]

You enter the tax amount in Screen 45.3.

[ggyueh]

Is there any workaround to get this to efile? I've tried overriding multiple lines and turning off error checking and still can't manage to efile.

[RoamingCPA]

Don't have any this year but did have 3 in 2025 for 2024 filing, all had to be paper filed.