Free File Fillable Forms Problem

Financial Planning Tax Strategies
1

My returns are pretty simple and I’ve used Fillable Forms for several years.

Twice my 2021 return has been rejected with an error saying I must check the “Schedule D not required” box. My capital gains are all from mutual fund distributions. I did check the box and it shows on screen and on the printed form. I’m wondering if there is an undiscovered error in the software. I’ve sending an email to Support but it could take days, or weeks. Thinking I might just add Schedule D and see what happens.

Anyone else have this problem. There is a list of known issues but I didn’t see this one listed.

Here’s the text of the rejection:

Dear Free File Fillable Forms Taxpayer:
Your 2021 federal tax return has been rejected due to the error(s) listed below.
Your Submission ID is: XXXXXXXXXXXXXXXX
Get help resolving your errors by using the Error Search Tool at https://www.irs.gov/filing/individuals/free-file-fillable-fo… You must follow the search instructions to find solutions
When you have your solution(s), sign in to your Free File Fillable Forms account at https://www.freefilefillableforms.com Fix your error(s) and resubmit your return.
Be sure to re-enter the direct debit date (if used) and the e-file date in the Step 2 tab of Free File Fillable Forms.
If you are unable to resolve the error(s), you can mail your tax return and your payment by April 18, 2022 to avoid penalties and interest.
Here is your error(s):
Issue : Business Rule IND-114 - If CapitalDistributionInd in the return is not checked and CapitalGainLossAmt has a non-zero value, then Schedule D (Form 1040) must be attached to CapitalGainLossAmt.

The following information may help you determine the form at issue:
Field/Xpath: /efile:Return/efile:ReturnHeader
You can also check the status of your tax return by logging in to your Free File Fillable Forms account at https://www.freefilefillableforms.com and click the “STEP 3. E-File Status : Tax Form” Tab.
This email was generated from an automatic system, which is not monitored for responses.

2

That sure sounds like a software bug to me.

Ira

3

To recap and update:

I first submitted 1040 with Line 7 box checked that Sch D not required. Rejected saying if the box wasn’t checked a Sch D must be submitted.

Second try I unchecked the box and submitted Sch D. Rejected saying if box was checked a Sch D couldn’t be submitted.

Third try I unchecked the box but did not submit Sch D. ACCEPTED

Obviously a problem either with the way Free Fillable Forms is transmitting the return or, more likely, a problem with the IRS software screening the return. They may never discover the box wasn’t checked even though it should have been. If they make an issue of it I have their acceptance and the two rejections in my defense.

My other option was to print the forms and submit by mail. But then it could take a couple years for them to process my return and I’m anxious to blow my $6 refund on beer.

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