Principales conclusiones
- Not the End of the World: An IRS rejected return does not mean you owe additional taxes or penalties. It simply means there was an issue with your submission that needs to be corrected before the IRS can process it.
- What to Check First: One of the most common reasons for rejection is a mismatch between the name or Social Security number on your return and what the IRS has on file. This can happen due to a simple typo or if a name change has not been updated with the Social Security Administration.
- No Doubles!: If a dependent listed on your tax return has already been claimed by someone else, such as another parent in the case of divorced couples, your return may be rejected. You will need to clarify eligibility or resolve the issue before resubmitting.
- Human-Error Processor: Errors with electronic filing, such as using the wrong prior-year Adjusted Gross Income (AGI) or IRS PIN for identity verification, can cause a return to be rejected. Checking your records carefully before submitting can help prevent this issue.
- Time to Go Retro: A rejected return can often be corrected and resubmitted electronically. However, if the same issue persists and electronic filing is not an option, you may need to print and mail your tax return to the IRS instead.
“Filing taxes can be stressful” is the understatement of a lifetime, but it’s also true that the last thing anyone wants is to have their return rejected by the IRS. An IRS rejected return means that the tax return submitted was not accepted due to errors or inconsistencies. While this can be frustrating, it is often fixable with some adjustments and resubmission.
It’s important to always understand why a return may be rejected and how to correct the issue, as well as how to prevent rejections in the future. You, as a taxpayer, can greatly benefit from learning to navigate the (sometimes arcane) process of re-submitting a return smoothly and avoid unnecessary delays in processing from the IRS.
Common Reasons for an IRS Rejected Return
There are several reasons why the IRS may reject a tax return. Some of the most common include:
1. Incorrect Personal Information: One of the most frequent causes of rejection is incorrect personal details such as a misspelled name, wrong Social Security number (SSN), or a mismatch with IRS records. This often happens when a taxpayer’s name does not match Social Security Administration records due to name changes or typographical errors. Ensuring that the information matches official records can help prevent these issues.
2. Dependent-Related Issues: If a taxpayer claims a dependent who has already been claimed by someone else, such as in cases of divorced parents or shared custody, the IRS may reject the return. This also applies if the dependent’s SSN is entered incorrectly. Resolving these issues often requires communication between parents or providing proper documentation to prove eligibility.
3. E-filing PIN or Adjusted Gross Income (AGI) Mismatch: When e-filing, the IRS requires taxpayers to verify their identity using their prior year’s AGI or an IRS-issued PIN. If the information does not match IRS records, the return may be rejected. To avoid this, taxpayers should refer to their previous tax return and enter the exact AGI reported.
4. Missing or Incorrect Income Information: If income reported on the tax return does not match what the IRS has on file (such as from W-2s or 1099 forms), the return may be rejected. This often happens when a taxpayer forgets to include all sources of income, underreports or over reports amounts, or omits employer information. To prevent this issue, taxpayers should gather all income-related documents before filing.
5. Incorrect Bank Account Information for Direct Deposit: If a taxpayer enters the wrong bank routing or account number when requesting a direct deposit for a refund, the IRS may reject the return to prevent processing errors. Double-checking bank details before submission can help avoid this common mistake.
6. Expired Individual Taxpayer Identification Number (ITIN): If a taxpayer files a return using an expired ITIN, the IRS may reject the submission until the ITIN is renewed. Renewing an ITIN before tax season starts can help avoid unnecessary delays.
How to Fix a Rejected Tax Return
The good news is that a rejected return does not mean the IRS will penalize you automatically. It simply means that the return was not accepted and must be corrected. Here’s how to fix and resubmit a rejected return:
- Review the Rejection Notice: The IRS will provide a rejection code or explanation for why the return was not accepted. Taxpayers should carefully review this notice to understand the specific issue. This notice is often sent via email if e-filing or by mail if filing a paper return.
- Correct the Errors: Once the issue is identified, make the necessary corrections. This may involve updating personal details, re-entering income information, or verifying a dependent’s eligibility. It is important to ensure that all information aligns with IRS records to prevent another rejection.
- Resubmit the Return: If the issue is fixed, the return can be resubmitted electronically. If electronic submission is not possible due to persistent errors, the return may need to be filed by mail. Filing by mail requires including a printed copy of the corrected return and any supporting documents, which may take longer to process.
- Seek Assistance if Needed: If taxpayers are unsure how to fix the error, they can contact the IRS, use tax preparation software for guidance, or consult a tax professional. Tax professionals can provide personalized advice and help resolve complex filing issues.
Preventing Future Rejections
While mistakes can happen, there are steps taxpayers can take to reduce the chances of an IRS rejected return:
- Double-check all personal information before submitting the return, including names, SSNs, and addresses. A small error in a name or number can lead to rejection.
- Use the correct AGI or IRS-issued PIN when filing electronically. Keeping a copy of the previous year’s tax return can help verify the correct AGI.
- Ensure all income is reported accurately to match what the IRS has on file. Reviewing W-2s, 1099s, and other income documents before filing can prevent discrepancies.
- Verify dependent claims to avoid conflicts with other taxpayers. Parents who share custody should communicate and decide who will claim dependents before filing.
- Keep ITINs and other tax-related identification numbers up to date. If an ITIN is required, it should be renewed before tax season.
- File early to allow time for corrections if necessary before the tax deadline. Early filing provides extra time to fix errors without rushing to meet the deadline.
- Use reliable tax software or work with a tax professional. Many tax software programs automatically check for common mistakes and can help reduce the chances of rejection.
Other Considerations About Rejected Returns
Sometimes, tax return rejections occur due to less common but significant reasons. Taxpayers who have undergone legal name changes should update their records with the Social Security Administration before filing. Individuals who are victims of identity theft may face rejections if someone else has fraudulently filed using their information. In these cases, contacting the IRS directly and following their identity theft procedures is essential.
For those who have filed an extension, an IRS rejected return should still be corrected and resubmitted before the extended deadline to avoid penalties or interest charges. Additionally, taxpayers who believe their rejection was in error can request an IRS review by contacting their local IRS office.
The Final Word on IRS Rejected Tax Returns:
Receiving an IRS rejected return can be frustrating, but it is not the end of the road. Understanding the common reasons for rejection, taking prompt action to correct errors, and implementing preventive measures can help taxpayers avoid delays and ensure their returns are processed smoothly.
By staying diligent and informed, taxpayers can minimize the chances of rejection and successfully navigate the tax filing process each year. Taking the time to review information carefully and using available resources can lead to a stress-free tax filing experience. If in doubt, seeking professional tax assistance can make the process even smoother and help ensure compliance with IRS regulations.
IRS Rejected Return: FAQ
1. Why did the IRS reject my tax return?
The IRS rejects returns for various reasons, but some of the most common include incorrect personal details, such as a misspelled name or incorrect Social Security number, dependent-related conflicts, mismatches in income reporting, and errors in verifying your identity when filing electronically. If you e-filed, you should receive a rejection notice with a specific code explaining why your return was not accepted.
2. What should I do if my tax return is rejected?
If your tax return is rejected, the first step is to carefully review the rejection notice from the IRS. This notice will contain an error code or explanation of what went wrong. Once you understand the issue, you should correct the error in your return and resubmit it electronically. If you are unable to correct the issue or if your return continues to be rejected, you may need to print and mail a paper return. If you are unsure how to proceed, reaching out to a tax professional or the IRS can help clarify your next steps.
3. Can my tax return be rejected due to a typo?
Yes, even a small typo can lead to a rejection. If your name, Social Security number, or any other key personal information does not exactly match what the IRS has on record, your return may not be accepted. This is especially important for individuals who have recently changed their name due to marriage or other legal reasons. Double-checking all entries before submitting your return can help prevent this issue.
4. How can I prevent my tax return from being rejected in the future?
Taking a few extra steps before filing can greatly reduce the chances of rejection. Make sure your personal information, including your name, Social Security number, and address, is correct. Verify that your income details match official forms such as W-2s and 1099s. If you are claiming dependents, confirm that they have not been claimed on another return. When e-filing, use the correct AGI from the previous year or the IRS-issued PIN to verify your identity. Filing early also gives you more time to address any potential issues before the deadline.
5. Will a rejected return delay my tax refund?
Yes, a rejection can delay your refund because the IRS will not process your return until it is accepted. The sooner you correct the issue and resubmit your return, the faster your refund can be processed. If you wait too long to fix and resubmit a rejected return, you could also risk missing the tax filing deadline, which might lead to penalties if you owe taxes.
6. What if I repeatedly get my tax return rejected?
If your return continues to be rejected despite correcting the issue, it may be a sign of a deeper problem, such as an identity theft concern or a conflict with IRS records. In this case, contacting the IRS directly is a good idea. They can help clarify the issue and provide guidance on how to resolve it. If necessary, you may also need to file a paper return instead of submitting it electronically. Seeking assistance from a tax professional can also be beneficial if you are having ongoing difficulties.
Jacob Dayan
Entrepreneur • CEO Community Tax, LLC
Jacob Dayan is the CEO and co-founder of Community Tax LLC, a leading tax resolution company known for its exceptional customer service and industry recognition. With a Bachelor’s degree in Business Administration from the University of Michigan’s Ross School of Business, Jacob began his career as a financial analyst and trader at Bear Stearns and Millennium Partners before transitioning to entrepreneurship. Since 2010, he has led Community Tax, assembling a team of skilled attorneys, CPAs, and enrolled agents to assist individuals and businesses with tax resolution, preparation, bookkeeping, and accounting. A licensed attorney in Illinois and Magna Cum Laude graduate of Mitchell Hamline School of Law, Jacob is dedicated to helping clients navigate complex financial and legal challenges.
Puede que también le guste
