What to Do if Your Tax Return is Rejected by IRS?

It is really intimidating to learn that the Internal Revenue Service (IRS) has rejected your tax return. But if you think that this is already considered a dead-end, you’re wrong. Perhaps it’s just a typographical error, or maybe there is nothing wrong, really, and the IRS is accountable for it. However, the real question here is, what exactly should you do if the IRS rejects your tax return? This article will help you with that!

Read further to learn why tax returns get rejected and what you should do if you get caught in this situation:

Common Causes of Rejected Tax Returns and Rejection Codes

There are a lot of reasons why your tax return can be rejected by the Internal Revenue Service. If the error occurred when transmitting Form 1040 through electronic means, this could be resolved, and the taxpayer’s return can be resubmitted. However, there are certain cases that require the tax return to be printed and mailed to the IRS office. 

Here is a list of the most common causes of rejected tax returns and their respective rejection codes. 

Mismatched Personal Information

The most common and frequent case for a return to be rejected is when the taxpayer’s provided personal information does not match the file’s information with the Social Security Administration. Such pieces of information that are frequently misspelled or mistyped are the Social Security Number or SSN, the birth date, name, and many more. To be accepted by the IRS, these certain pieces of information must match what they expect. 

If you want to know what type of personal information did you input incorrectly, then you must familiarize yourself with these codes:

  • Code for the bad primary taxpayer: SSN: R0000-500-01
  • Code for bad spouse SSN: R0000-503-02 and/or R0000-504-02
  • Code for birth date mismatch: F1040/F1040A/F1040EZ-524-01

Previously Accepted Return

This happens if there is already someone else who electronically filed a return with the exact same taxpayer number, whether it is a Social Security Number or a Tax Identification Number. This usually occurs if you or your spouse has already filed a return for the current year through electronic means. On the other hand, this can also take place if you are a victim of identity theft. For you to know if this is the reason why your tax return is rejected, remember the rejection codes: R0000-902-01 and/or IND-510.

Dependent Claimed on Another Return

This normally happens when a taxpayer claims a dependent that is also being claimed on another taxpayer’s return. Such things happen when there is confusion or miscommunication between the custodial and non-custodial parents or guardians about who should claim the dependent. The rejection codes for this circumstance are R0000-507-01 and/or SEIC-F1040-521-02. 

Dependent Files Own Return

This usually takes place when a taxpayer filed a tax return for the year by themselves and took the personal exemption. The rejection code for this is F1040-512.

Electronic Signature Mismatch

When you transmit your tax returns electronically, you are required to make known your Adjusted Gross Income from last year or your Identity Protection Personal Identification Number or IP PIN for you to be able to sign electronically on your return. Either of the two numbers must match the IRS database. If none matches, then the Internal Revenue Service will surely reject your tax return. In order to know whether this is the reason for the rejection of your return, look for the following codes:

  • Codes for bad PIN: IND-180-01 and/or IND-183-01
  • Codes for bad AGI: IND-031-03 and/or IND-032-03

EIN Does Not Match

A tax return can also be rejected if the Employer Identification Number on the return will not match with the information that the IRS has in its database. Search for the rejection codes FW2-502, FW2G-502, and/or F1099R-502-02 to find out if this is the problem.

What Should You Do If Your Tax Return Gets Rejected?

When your return is rejected because of a typographic error or something is misspelled, then you can just amend your return and have it submitted again to the IRS. To resubmit your tax return, all you need to do is follow these simple steps: 

  1. First, click on the “Overview” button at the top of your screen. You will find it on your H&R Block Online product. 
  2. After that, you may now go to the “Check Status” or “Next Steps” option. 
  3. Lastly, click on the “Details” option and then select about the Rejection. Click “Fix Issues” to correct any problems. 

Once you have already updated your return, you may choose to continue to the file. If that won’t appear as an option, then that only means that there are still additional issues that you must resolve. So, you must double-check all the information that you have entered and corrected. If there are still issues, you may choose “Next” to fix all of those remaining problems. 

When you are done correcting all the issues, you will be asked how you want to re-file your return. Simply go ahead and choose the option that is most amenable to you. Once you are done choosing, just follow the additional steps that will be flashed on your screen in order to successfully re-file your rejected tax return. 

However, if you find that all of the information you have entered is correct from the start, then the fault must not be yours. Try contacting the IRS and the Social Security Administration to verify their database. You can keep in touch with them by calling these numbers: 

  • IRS — 800-829-1040
  • SSA — 800-772-1213

Bottomline

Your tax returns may be rejected based on numerous reasons, but most are about errors in the information entered. It can also be that there is nothing wrong with the items that you placed there, but the database of the IRS and the Social Security Administration is just not updated.

Don’t think of rejected tax returns as a dead end; you can amend your return and have it submitted again, which means that you should not lose hope about getting your return! 

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