Form 990-T efile mandate

[DFitz]

IRS issue an Update on mandatory electronic filing of Form 990-T-

Any 2020 Form 990-T with a due date on or after April 15, 2021, must be filed electronically and not on paper. A limited exception applies for 2020 Form 990-T returns submitted on paper that bear a postmark date on or before March 15, 2021.

The 2020 Lacerte program still issues a Critical Diagnostic indicating Form 990-T cannot be file electronically. How can we determine when or if Lacerte will comply with this mandate?

[TylorValdez1]

The diagnostic is erroneous. As long as you have 990-T check for efile in screen 1 you will be fine. You may disregard the diagnostic. In the efile wizard the 990-T is the same as US UBIT.

[kgreen8393]

However the program does not prepare Form 8879-EO for the signature on the E-File Authorization Form, nor do the filing instructions state the return is being E-Filed.  I was on the phone today with support and they stated development told them that the Lacerte program adjustments have not yet been approved by the IRS.

[jenniferfarris]

That's an interesting note because I noticed there are still several issues with the Form 990-T that I need to file. Perhaps once the IRS approves, there will be an update rolled out that addresses these as well.

[Tomd1]

Hi TylorValdez1,

Since you are an employee, I assume of Lacerte, can you file a 990-T for me because my system still will not let me file one.

[TylorValdez1]

We are still working to finalize the 990T e-file. Currently we are only approved to e-file the extension form for the 990T. We hope to have approvals and finalize the e-file soon. 

[kgreen8393]

Many 990-T's were due April 15th.  I have been waiting to e-file Form 990-T after extending in April.

How soon is soon?

The fact these returns MUST be E-Filed this year and the software was not ready to E-File by the due date of April 15th is amazing!

[sjrcpa]

@TylorValdez1 But this person can't efile the 990-T extension

https://proconnect.intuit.com/community/lacerte-tax-idea-exchange/diagnostic-9075-and-7688-in-error/...

[TylorValdez1]

Isn't the due to file an extension 4/15 for calendar year filers? I have had clients that successfully e-file the 8868 for 990-T returns as of 3/31/21.

[Tomd1]

Form 990 and 990-T organizations can have a year ending on any month of the year and the return is due on the 15th day of the fifth month after their year end which for organizations with a December year end is May 15.  May 17th this year because the 15th is on Saturday.

Your welcome for the accounting lesson.

[jjg]

Any news on the status of being able to e-file 990-T?

[jenn_ca2020]

Have you tried again after this latest update? I am not getting the critical telling me they cannot be e-filed right now.

[Tomd1]

I just tried to efile a 990-T with the new update and it says that they are still trying diligently to get approval to file 990-T's electronically

[Todd Rounds]

I have the same problem

[TK31522]

We had paper filed a 990-T and received word that it must be electronically filed. I literally just set the 990-T to efile in Screen 1 and attempted to transmit. The return failed transmission and the  resolution given was "We are working diligently on final approval with the agency so that this return type can be electronically filed as soon as possible. Blah, blah blah."

It would seem the diagnostic cannot be disregarded. What is Plan B please?

[sjrcpa]

According to this

Solved: What's new in Lacerte® Tax 2021 - Intuit Accountants Community 

filing 990-T will be new for 2021. Not a good answer.

[TK31522]

What a revolting development! 

[Tomd1]

I would sure appreciate if someone from Intuit/Lacerte would have the common courtesy to let us know what is going on and when (if ever) we will be able to file the 990-T electronically and what we are supposed to do if they cannot get their problem fixed.

[jenn_ca2020]

I am getting the same error. We were able to successfully file the extension so we have some time, but I keep trying to e-file the return every time there is a new update. No luck yet.

[kgreen8393]

Honestly, this is getting a little ridiculous.  My Form 990-T was due with payment April 15th.  Regular 990's were due May 15th.  The returns must be electronically filed this year.  We are now over two months past the due date of my return and still no return can be electronically filed.  Lacerte needs to reach out and let us know the issue!!

It is interesting to see that someone filed on paper and the IRS would not accept the return.  These clearly must be electronically filed, but it is almost the end of June and no filings can take place.

[TK31522]

I have now successfully transmitted a 990T through Lacerte so the path is open. Unfortunately, we have a Form 4136 attachment and the IRS is rejecting the return with an error message saying that the form needs to be attached. The form IS attached correctly so it appears it is not being sent with the return for some reason. Baby steps....

[kgreen8393]

After seeing your comment about 990-T now able to be E-filed, I have tried to E-File one of my 990-T returns.  The return was sent, but ultimately rejected saying the type listed under the return info in Screen 1 is missing or invalid.  However, when I look at the input for the diagnostic referenced, I have listed     408(e) - IRA, SEP or SIMPLE, which is correct.  

I guess the E-Filing really isn't working yet 😞

Did you have any other errors besides the Form to be attached?

[jenn_ca2020]

My 990-T was finally accepted after a ton of rejects. But now there is no acceptance letter to print even though it says there is one. Just prints a blank with client info but no acceptance info. I looked at letters and there doesn't seem to be one for 990T. Anyone know how to add one?

Side note, there was no acceptance letter for the extension either.

[BlondeFox]

We're a small business looking for someone who can E-file a 990-T for us.  We've always done it on paper ourselves.  With the E-file requirement we are in need of a tax professional who can help, but have not been able to find one who can.  Thanks!

[TK31522]

I'm sorry I didn't see your question earlier about other errors. The only error we have been getting is the one about needing to attach Form 4136 even though it IS attached. I just tried again to transmit and it rejected for the same error. This issue is starting to overheat on my back burner 🙂

[TK31522]

Some CPA firms may not have enough clients to be required to file returns electronically, or they may have an exemption from doing so. I would suggest that you just keep contacting local CPA firms until you find one that can work with you. Hope this helps. 

[TK31522]

Fast forward to August. Our IT person has been communicating with Lacerte regarding the issue of the rejection of Form 990T because it needed Form 4136 attached (which it is by the way). Here is the latest communication from Lacerte:

"2020 EXM US 990T E-File Reject F990T-037 Looking for Form 4136
This unexpected behavior has been determined to be working as designed. Currently, Lacerte does not support Form 4136 for 990-T e-file. This return will need to be paper filed."

May I reiterate that we did paper file this return initially. We received a notice that it was not accepted because electronic filing is mandatory for this return. We send attachments to the IRS via Lacerte all the time. Why this particular attachment can't go is beyond me.

[jenn_ca2020]

We have had a few random attachment fail issues, not with the 990-T, but with other filings. One thing we have had success with in the past, is to pick "other" instead of the actual form number that is attached when you are linking the attachment for e-filing. It might be worth trying since Lacerte sounds like they have washed their hands of it and aren't going to help anymore.

[TK31522]

Thank you for the suggestion! Unfortunately I just looked at the return again and there is no "Other" option to choose for attachments for the 990/990T. There is a specific box to check to send the PDF attachment with the Form 990T but it must be broken...

[IntuitBettyJo]

Hi there, 

We currently have our development team taking a closer look into this.  I will let you know as soon as I get an update. 

Thanks for posting in the community! 

-Betty Jo 

[IntuitBettyJo · Accepted solution]

Hi there, 

Regarding the 2020 EXM US 990T E-File Reject F990T-037 Looking for Form 4136 - IRS Notice Received When Paper Filed

When filing a paper return due to a software limitation, contact the IRS e-File Help Desk at (866) 255-0654 and get authorization to file the paper return.  This unexpected behavior has been determined to be working as designed. The current diagnostic experience is under review to determine if additional enhancements can be utilized to improve this experience.  

If you receive letters for penalties due to software limitation, inform the IRS of the software limitation for reasonable cause.

Hope this helps! 

-Betty Jo 

[TK31522]

Multiple calls to the IRS determined that they, under no circumstance, would allow us to file the 990T on paper. Our IT person entered the Form 4136 information on a different line in the return and it was finally accepted by the IRS electronically. I hope we do not get a notice because of the Form 4136 info not being in the "correct" place. The Form 4136 attachment was still in the return so hopefully it went with it.

As someone posted earlier, the acceptance letter in Lacerte for the US-BIT prints, but not correctly. It gives no indication that the return was accepted and is therefore rather useless for verification purposes.

[gjscpa]

Finally was able to file 990-T in August, after three months of dealing with IRS and Lacerte. Spent at least 40 hours on a $500 return. Plus the REP cost over $100.

The bigger problem is, that after all the manipulation trying to get the return to go through, the data changed the amounts on the return from a small loss to a balance due! This was not apparent until the taxpayer received a Notice. Turns out the depreciation did not flow to the correct line.

Now we are back to square one because Lacerte refuses to fix the module so that an Amended 990-T can be e-filed as mandated. IRS recommends trying different software. Lacerte is unwilling to help. At a minimum they should give us all refunds for the REPs. Morally speaking, they should compensate us all for the time spent dealing with their problem.

[staff4cakcpa]

I hope you found someone to help you!

[jenniferfarris]

I filed my 990-T electronically last year but for some reason it's still in draft form for 2021. How long is this going to take? There is no reason that it's taking so long for it to be final when this isn't the first year anymore.

[jenniferfarris]

But when will the filing be addressed for 2021 e-filing? I don't understand that all diagnostics and notes have disappeared but it is still unable to be filed due to Lacerte.

[willatbird]

How did you manage to do that? I just tried to eFile a 990T for 2020 (October FYE) and it said that the 990T can't be filed because of a defect in the software which will be corrected in a future release.