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How to resolve Lacerte diagnostic ref 40377 - Invalid setup: No Form 114 in the return

by Lacerte Tax 2023 Updated 6 months ago

This article will help resolve the following e-file critical diagnostic:

  • e-file: Invalid Setup: Form 114 for the Taxpayer had been selected for Electronic Filing but there is no Form 114 for the taxpayer in the return. Please double check your entries. (ref. #40377)

This diagnostic will generate if the box in Screen 1, Client Information has been selected for Federal Form 114 (Taxpayer) to be e-filed, but there's no foreign account entered for the taxpayer.

To resolve this diagnostic by entering a foreign account for the taxpayer:

  1. Go to Screen 82, Foreign Reporting (114, 8938).
  2. Select Add from the left panel under the Account section.
  3. Enter a 1 or 2 in, Type of account: 1= bank acct, 2= securities acct, or specify.
  4. Enter the Maximum value of account (-1= unknown).
  5. Complete all of the information in the Financial Institution subsection.
  6. Complete all other applicable information for the foreign account.
  7. Select the General Information button or link from the left panel.
  8. Review the entry in E-file Form 114: 1= taxpayer, 2= spouse, 3= both.
  9. Select the box Print Form 114 with complete return.

To resolve this diagnostic if the taxpayer doesn't have a foreign bank account and the spouse does:

  1. Go to Screen 1, Client Information.
  2. In the Electronic Return section, clear the selection in Federal Form 114 (Taxpayer).
  3. Make sure Federal Form 114 (Spouse) is selected.

To resolve this diagnostic if neither the taxpayer or spouse have foreign bank accounts:

  1. Go to Screen 1, Client Information.
  2. In the Electronic Return section, make sure both Federal Form 114 (Taxpayer) and Federal Form 114 (Spouse) are not selected.

To resolve this diagnostic if the information proforma'd from the prior year:

  1. Go to Screen 82, Foreign Reporting (114, 8938).
  2. Select the Account from the left panel.
  3. Review the Financial Institution information.
    • If the information has been corrupted you need to delete the account and re-enter the information.
  4. Review Screen 1, Client Information to be sure the correct Form 114 is selected for e-file.

To resolve this diagnostic for accounts owned jointly and the 114 is not being amended:

  1. Go to Screen 82, Foreign Reporting (114, 8938).
  2. Scroll to the Foreign Bank Account (114) subsection.
  3. Delete any entries in Taxpayer Bank Security Act ID (BSA ID).
  4. Delete any entries in Spouse Bank Security Act ID (BSA ID).

If none of the steps above clear the diagnostic:

  1. Go to Screen 82.1, Foreign Bank Account (114).
  2. Select 1 under the Account section from the top-left menu panel.
  3. Select the Delete button.
  4. Enter the information again using the steps from above.
Lacerte Tax

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