Jump to content
ATX Community
Sign in to follow this  
giogis245

Efile rejection F1040-438m, Third Party Designee

Recommended Posts

All of the returns I have prepared this morning have been rejected, under Third Party Designee, I hit Yes and my info is there already but I also check the box "use paid preparer" and this is the rejection I am getting: I am confused as to how to enter? Any suggestions?

      F1040-438
If Form 1040, 'ThirdPartyDesigneeInd' has a choice of "Yes" indicated, then 'ThirdPartyDesigneeInd' in the Return Header must not be checked.

/efile:Return/efile:ReturnData/efile:IRS1040/efile:ThirdPartyDesigneeInd

Share this post


Link to post
Share on other sites

I always wonder why preparers want that checked. That means ONLY that the IRS will call you with questions, which might be easier for the IRS to pick up the phone versus a formal audit. Maybe it is just me, but I do not want to get calls from the IRS because I will think they are scammers. I prefer a letter to my client and then I ask them to sign a power of attorney.

Share this post


Link to post
Share on other sites
30 minutes ago, Pacun said:

I always wonder why preparers want that checked. That means ONLY that the IRS will call you with questions, which might be easier for the IRS to pick up the phone versus a formal audit. Maybe it is just me, but I do not want to get calls from the IRS because I will think they are scammers. I prefer a letter to my client and then I ask them to sign a power of attorney.

It has allowed me to discuss many returns with the IRS.  The rule is not cast in stone.  Once, one year is past, it has no value whatsoever.  At that point, only form 2848, and a credential of E.A., CPA or Attorney will get you any discussion.

Share this post


Link to post
Share on other sites

Like Jack, I have also been able to speak with the IRS about client returns using the third party designation.  Glad to know that the rejection message wasn't just something I was doing.  I was confused as well.  Gotta love glitches

Share this post


Link to post
Share on other sites
18 hours ago, giogis245 said:

All of the returns I have prepared this morning have been rejected, under Third Party Designee, I hit Yes and my info is there already but I also check the box "use paid preparer" and this is the rejection I am getting: I am confused as to how to enter? Any suggestions?

      F1040-438
If Form 1040, 'ThirdPartyDesigneeInd' has a choice of "Yes" indicated, then 'ThirdPartyDesigneeInd' in the Return Header must not be checked.

/efile:Return/efile:ReturnData/efile:IRS1040/efile:ThirdPartyDesigneeInd

 

1 hour ago, BulldogTom said:

Is it fixed?   I have not transmitted any returns yet.   All waiting for additional information.   But I should have 2 ready to go tonight.

I have a couple ready to go, but I'm like Tom - waiting to see if ATX will put something out on it because I don't want to take a chance on getting anything balled up with ATX/IRS in this hectic year.  Surely lots of people across the country have sent in theirs and ATX is working on it. 

I think maybe it's a design flaw in the ATX "Main Info" schedule in that checking the "Yes" box means do you want for someone other than the paid preparer to be a third party designee. If you check only the "If yes..." box then your paid preparer info disappears from the line below, but when you go to page one of the 1040 both boxes (self-employed and 3rd party) will be correctly checked.  So I think the "Yes" answer on the Main Info schedule is for people other than the preparer to type in their info on the line below. 

If that's the case, then the setup of the question on the Main Info sheet is very misleading (I'm not sure how it should be stated).  In any case, since I'm in no particular hurry on my cases, I think I'll wait and see what, if anything, ATX does.

Share this post


Link to post
Share on other sites

If you want someone to be the 3rd party designee, you must check the "Yes" box.  If you want that person to be the preparer, you check the other box marked, "If yes, ...etc."  That's what ATX is currently not allowing.  If you do not check yes and fill in a designee's name below, the name will show up on Schedule 6, Foreign Address and Third Party Designee.

Share this post


Link to post
Share on other sites
1 hour ago, BulldogTom said:

Is it fixed?   I have not transmitted any returns yet.   All waiting for additional information.   But I should have 2 ready to go tonight.

Thanks

Tom
Modesto, CA

 

11 minutes ago, BLACK BART said:

 

I have a couple ready to go, but I'm like Tom - waiting to see if ATX will put something out on it because I don't want to take a chance on getting anything balled up with ATX/IRS in this hectic year.  Surely lots of people across the country have sent in theirs and ATX is working on it. 

I think maybe it's a design flaw in the ATX "Main Info" schedule in that checking the "Yes" box means do you want for someone other than the paid preparer to be a third party designee. If you check only the "If yes..." box then your paid preparer info disappears from the line below, but when you go to page one of the 1040 both boxes (self-employed and 3rd party) will be correctly checked.  So I think the "Yes" answer on the Main Info schedule is for people other than the preparer to type in their info on the line below. 

If that's the case, then the setup of the question on the Main Info sheet is very misleading (I'm not sure how it should be stated).  In any case, since I'm in no particular hurry on my cases, I think I'll wait and see what, if anything, ATX does.

 I resubmitted mine a couple of hours ago and they were accepted so the issue is resolved. Yay!

Share this post


Link to post
Share on other sites

I sent in two in the last hour and they have both been accepted.  Checked both Main Info boxes ("Yes" and "If yes"), so I guess ATX has fixed the glitch.  Drat; now I'll never know if my elaborate theory of what was originally wrong was right.  

Share this post


Link to post
Share on other sites
4 hours ago, BLACK BART said:

 

I think maybe it's a design flaw in the ATX "Main Info" schedule in that checking the "Yes" box means do you want for someone other than the paid preparer to be a third party designee. If you check only the "If yes..." box then your paid preparer info disappears from the line below, but when you go to page one of the 1040 both boxes (self-employed and 3rd party) will be correctly checked.  So I think the "Yes" answer on the Main Info schedule is for people other than the preparer to type in their info on the line below. 

 

I agree with your theory.  I think.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...