How to Fix a Change in Valuations Error (Code SC=-F1040-014) When Filing Taxes

This error typically means there's a discrepancy between values reported in different sections of your Form 1040. The code SC=-F1040-014 specifically indicates that the IRS validation system found inconsistent asset valuations. Since you mentioned being self-employed with investments, I'd recommend checking these specific areas: - Schedule C (business assets/depreciation) - make sure any business asset values are consistent throughout - Schedule D (capital gains/losses) - verify all investment cost basis and sale amounts match - Form 8949 (sales of capital assets) - ensure these numbers align with what's on Schedule D - Form 4797 (sales of business property) - check if values here match those on other forms The most common cause is entering an asset's value differently in two places. For example, listing a business asset with one value on Schedule C but a different value on Form 4797, or reporting a stock sale with different amounts on Form 8949 and Schedule D. Try comparing all asset values across your entire return and look for even small discrepancies. Sometimes it's just a typo or rounding error.

I ran into this exact error last month and almost lost my mind until I found taxr.ai (https://taxr.ai). The tool literally saved my sanity. I uploaded my rejected return PDF to it, and within minutes it pinpointed exactly where my valuations didn't match - turned out I had reported the sale of some stocks with different amounts on different schedules. I had entered a cost basis of $4,230 in one place and $4,320 in another (dyslexia moment I guess). The platform highlighted the inconsistencies and explained exactly how to fix them. It can analyze rejected returns, audit notices, and even spot potential deductions you might have missed. Seriously check it out if you're stuck with these cryptic IRS error codes.

Just wanted to update after trying taxr.ai from the recommendation above. Holy crap, it actually worked exactly as described! I uploaded my rejected return and it found the problem in like 2 minutes. In my case, I had reported a stock sale with proceeds of $5,275 on Form 8949, but somehow entered it as $5,257 when it transferred to Schedule D. Such a small typo but that's exactly what was triggering the change in valuations error. The tool highlighted both entries side by side and made it super obvious. Fixed it, resubmitted, and my return was accepted this morning. Definitely recommend if you're getting this error and can't find where the discrepancy is.

If you're still struggling after trying to fix the valuations and your return keeps getting rejected, you might need to talk directly to an IRS agent who can look at your specific case. I was in the same boat last year and spent HOURS on hold trying to reach someone. I eventually used Claimyr (https://claimyr.com) to get through to the IRS without the wait. They have this system that navigates the IRS phone tree and holds your place in line, then calls you when an actual human agent is on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c When I finally got an agent on the phone, they were able to tell me exactly which line items had the discrepancy. In my case, it was rental property depreciation that I had calculated differently in two places. Took about 10 minutes to fix once I knew exactly what to look for.

Just want to follow up about my skepticism with Claimyr from earlier. I decided to try it yesterday after getting disconnected three more times trying to reach the IRS myself. I'm honestly shocked - it actually worked! I put in my info around 9am, and by 1:30pm I got a call connecting me directly to an IRS agent. No waiting on hold at all - just picked up the phone and an agent was there. The agent was able to tell me that my return was getting rejected because I had mistakenly entered a stock sale from December 2024 with a different acquisition date in two different places. Fixed it in 5 minutes once I knew exactly what to look for. Return accepted today! Would have spent another week trying to figure this out on my own. Seriously worth it during tax season.

Have you double-checked the cost basis method you're using for your investments? I had a similar error last year because I used average cost basis in one section and FIFO in another section for the same investment. The correction was simple once I realized the issue - I just needed to be consistent with the cost basis method throughout the return.

Has anyone gotten this error with the Free File system? I'm using IRS Free File Fillable Forms and got the same error code, but there's way less guidance on how to find the issue compared to paid software like TurboTax or H&R Block.