Hi, I have a critical diagnostic on a 2020 individual tax return, Ref No 2055347. which reads as follows:
"Dispositions: This return includes a deferral of gain, or a recognition of previously deferred gain, from a QOF disposition reported on Form 4797. This part of the tax program is still in development. Please defer filing until this part of the program is complete."
I am reporting a deferral of gain, not a recognition of previously deferred gain. The gain was from a 1231 sale of real property reported on Fm 4797, p2. Have I checked an incorrect box?
Can you tell me how to clear this diagnostic so I can file before October 15th? Thank you!
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I am adding a partial discussion of a chat I had today (9/30/2021) with ProConnect:
REP 11:54:23 AM So the information that I have gathered seems to mean we are waiting on the IRS to update the instructions on the QOF on the 4797. It shouldn't prevent you from efiling the return, but the instructions are still changing so the diagnostic appears because they haven't been finalized by the IRS yet
PEN 11:55:55 AM Not sure I understand. If I file the return, will it be rejected?
REP 11:56:49 AM There is a chance it will because the instructions for that sections of the 4797 is still being updated by the IRS. It seems that most of the people who have asked have went ahead and e-filed the return.
PEN 11:57:54 AM If it is rejected, it will not be from Intuit? It will be rejected from the IRS? Is that correct?
REP 11:58:05 AM Correct
PEN 11:58:31 AM Got it. Do I click the Ignore box on the error message?
REP 11:58:53 AM Yep. That should allow for e-file
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