No one likes rejection, even if it comes from the taxman. You can get a tax return rejected by the IRS for several reasons, such as a misspelled name, inaccurate information on a dependent, or entering an incorrect date of birth. The IRS considers your taxes unfiled if the agency rejects your return, so it’s crucial to fix the incorrect details. You should also resubmit it before the deadline to avoid incurring penalties and interest on your taxes. There’s no need to panic if you receive a notification on the rejection of your tax return because you can quickly correct such errors and e-file again. Here’s a guide on reasons for tax return rejection and how to know when you need professional help.
Reasons You Might Get Your Tax Return Rejected
It’s most likely a simple factual error that caused the IRS to reject your tax return, but it’s good to understand the most common causes. The main point is to figure out what’s wrong quickly and refile to avoid penalties. Here are a few problems that can get your tax return rejected:
Missing and Incorrect Information
The omission of personal information or that of a dependent can lead to a rejected return. Your form must include the employer identification number and all other relevant business information. You must enter the correct information on dependents in the case of sole proprietorship and family partnerships. Exceeding the standard deduction and entering incorrect routing numbers for direct deposit or payment can also result in your tax return being rejected.
A Dependent Claimed on Another Return
A dependent cannot be claimed on two or more tax returns. This occurs when one taxpayer claims a dependent but another, such as a spouse, had claimed the same dependent on a separate return. This often happens where there is a lack of communication between custodial and noncustodial parents on who should claim the dependent. The IRS will also reject a tax return for having the SSN of a dependent claimed on another return. This means two parents cannot claim the same child on separate returns. You can, however, claim one child and the other parent claims another child.
Mismatched Information
Any information that you provide should match the information on your file with the Social Security Administration. This is the leading cause of “tax return rejected” responses by the IRS. Such information could be info for the taxpayer’s spouse, such as date of birth or an SSN that doesn’t match what the IRS has. A typo can also lead to a mismatch error.
Previously Accepted Tax Return
A tax return rejected code R0000-902-01 means your Social Security Number has been used in that current year to e-file a tax return. The rejection code IND-510 means your Tax Identification Number has been used by someone else to e-file a tax return. This could mean two things: A spouse has already e-filed a return for the said year, or someone has stolen the taxpayer’s identity.
Failure to Sign the Return
IRS will only accept signed tax returns. Signing your return serves as affirmation that the details are true and correct to the best of your knowledge. Both manual and electronic tax filers must sign their returns to avoid rejection by the IRS.
Those submitting their returns electronically must enter either their Adjusted Gross Income from the previous year or their Identity Protection Personal Identification Number (IP PIN) to sign their return electronically. The IRS matches those with the agency’s database to detect and prevent tax fraud since only the correct taxpayer should know their AGI or IP PIN.
A Dependent Files Own Return
The IRS uses rejection code F1040-512 when a parent or a guardian claims a dependent on their return, but that dependent has already filed their own return.
EIN Not Matching
A tax return that has included an incorrect Employer Identification Number (EIN) will earn the IRS rejection codes FW2G-502, FW2-502, or F1099R-502-02.
Missing Documents
Another common error is failing to include your W-2 or other required information for your return.
Incorrect Tax Return Year
A taxpayer may complete and file a tax return for a particular year but submit it in the subsequent year. The IRS will use the tax return rejected code IND-689-01 for such an error. This error is less frequent than the others explained above.
The good thing with e-filing your tax returns is that the IRS has set up its system to notify the taxpayer whether their return has been accepted or rejected. You will receive an IRS code showing the exact reason for any rejection. The IRS will indicate which corrections you must make to the rejected tax return, but consult with an expert if you’re unsure what’s needed.
IRS Form 1040 e-File Reject Codes & Meanings
- IRS Form 1040 reject code IND-510-02 means that the Social Security number (SSN) for a dependent listed on your tax return does not match the IRS records. This usually happens if the SSN is entered incorrectly or if there’s an issue with the dependent’s information.
- IRS Form 1040 reject code IND-689-01: This code means the IRS has already received a tax return with the taxpayer’s Social Security number, suggesting a duplicate filing.
- IRS Form 1040 reject code R0000-902-01: This indicates that the tax return was rejected because the Social Security number on the return has already been used on another tax return for the same tax year, suggesting possible identity theft or duplicate filing.
- IRS Form 1040 reject code IND-452: This reject code means there’s an issue with the Earned Income Credit (EIC) because the qualifying child listed has already been used on another tax return, which can happen in cases of duplicate claims for the same dependent.
- IRS Form 1040 reject code IND-515-01: This code indicates that the IRS has found a mismatch between the filing status or exemption amounts claimed on the tax return and their records, possibly due to incorrect information being submitted.
- IRS Form 1040 reject code IND-513-01: This reject code means the dependent’s Social Security number listed on the tax return does not match the IRS’s records for their date of birth, indicating a discrepancy in the dependent’s information.
Tax Return Rejection for Mail Filers
IRS rejection codes are not applicable for the taxpayer who opts to file their return via mail. The IRS can’t technically reject the return, but such a return will not be considered filed until the taxpayer corrects the information. The IRS can automatically correct math errors. You will receive a notice in the mail requesting the missing information for other mistakes such as the wrong EIN or date of birth. You should correct and refile your tax returns within five business days after the deadline if you filed before the deadline. Contact a tax expert if you’re unsure how to proceed because any delay can end in penalties.
Let Silver Tax Group Help You If You Got Your Tax Return Rejected
Getting a “tax return rejected” notice can be disheartening and frustrating and can delay your refund. Working with detail-oriented tax professionals can go a long way in helping you avoid this problem. The Silver Tax Group has a team of experienced tax advisors who can help you address tax issues promptly or handle any disputes with the IRS. Contact our office for a quick consultation if your tax returns have been rejected.
