Pro Online:
The IRS has issued guidance on resolving Reject Code: F1040-071-05. In order for the return to be accepted, the IRS recommends preparers take the following steps before retransmitting these returns:
TaxSlayer Online Program
In 2020 Pro Online, open the return and take the following steps:
- Add a $1 Capital Gain entry on Schedule D
Navigate to Federal Section > Income > Capital Gains and Losses > Additional Capital Gains Distributions > Enter $1 in the Additional Capital Gains Distributions field.
- Add a -$1 Other Income entry on Schedule 1 with the description BR1
Navigate to Federal Section > Income > Less Common Income > Other Income Not Reported Elsewhere > Enter BR1 for the description of other income > Enter -1 in the amount of other income field.
*Do not mark the Earned income box.
For a list of returns that rejected with Reject Code: F1040-071-05, select Rejected Clients from the Welcome Menu of Pro Online. The list can be sorted using the up and down arrows in the Reject Information column.
**Please note that this guidance was issued by the IRS via an Industry Call