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Tuesday, March 13, 2012

What if my return is rejected by the IRS?

E-filed returns are rejected for a variety of reasons. If your return is rejected by the IRS, your return has not been filed. It's important to resolve the issue that caused the rejection, and then you may e-file again. If you are unable to resolve the issue or choose not to e-file, you will need to print the return and file it by mail. See the instructions for where to mail your return.        Listed below are some common rejection reasons and what to do if you receive one of these reasons after e-filing:
Error Reject Codes
What are the most common reasons an e-filed return could be rejected by the IRS?
The most common reasons Free File Fillable Forms returns are rejected after e-filing include:
  • The prior-year Personal Identification Number (PIN) or Adjusted Gross Income (AGI) does not match what the IRS has in its records. You need to have at least one of these numbers match. If you are getting this error, double-check the AGI and be sure to enter the exact amount from the prior year return. If you did not enter a PIN, make sure you entered the AGI amount. If you need assistance getting last year's AGI or PIN, you may call the IRS toll free at (800) 829-1040 and press # 2.
  • There are errors related to the W-2. If you have multiple W-2s, make sure you add the total amount of all income (in Box 1) and enter the totals from box 1 on your 1040 Form. Also, add each withholding amount (in Box 2) and then add to main form. If you are e-filing, you need to attach each W-2 to the return on "E-file My Taxes" tab. Be sure that you have completed all the information on your W-2 before e-filing, filling in all fields. Make sure you're using the correct United States Postal Service state abbreviation. If you don't have income to report from a W-2, you can skip the requirement to add a W-2 when you e-file your tax forms.
AGI Mismatch Errors
  • Error Code 0679, IND-025 or IND-026: The amount you entered for your prior year’s Adjusted Gross Income (AGI) does not match what the IRS has in its records.
  • Error Code 0680, IND-027 or IND-028: The amount entered for your spouse's prior year’s adjusted gross income (AGI) does not match what the IRS has in its records.
What these mean: The IRS requires you to enter the exact amount of your adjusted gross income from the prior year's return in order to e-file. Do not guess at the amount or round off the number - it must match what your tax return said last year and what the IRS recorded in its database. If you think you entered the AGI correctly, you must call the IRS to resolve the mismatch: 800-829-1040.
You can enter the same AGI for you and your spouse if you are married filing jointly. However, if you and your spouse filed separately, you will need to enter different AGI amounts from each of your previous year's tax returns.
Personal Information Mismatch Errors
  • Error Code 0522, F1040-524, F1040A-524, F1040-525 or F1040EZ-525: The date of birth you entered on this return does not match what the IRS has in its files for you. The IRS receives this information from the Social Security Administration.
  • Error Code 0504 or R0000-504-01: The dependent's Social Security number and last name on this return does not match what the IRS has in its records. The Social Security Administration provides this information to the IRS.
  • Error Code 0523, F1040-321, F1040A-176 or F1040EZ-085: The secondary taxpayer's date of birth on this return does not match what the IRS has in its files. The IRS receives this information from the Social Security Administration.
  • Error Code 0503, R0000-503 or R0000-530-1: The secondary taxpayer's Social Security number and last name do not match what the IRS has in its records. The IRS receives this information from the Social Security Administration.
  • Error Code 0500 or R0000-500: Primary Social Security Number and Primary Name Control of the Tax Form must match data from the IRS Master File.
What these mean: Personal information provided by the taxpayer does not match what the IRS has in its records. This can be information for you, your spouse or dependents, and includes name, date of birth and Social Security Number. Make sure all of this information is entered correctly and that information exactly matches what is on the Social Security card. If you have entered the information correctly, you will need to resolve the discrepancy with the IRS and/or the Social Security Administration, which provides this information to the IRS. Call the IRS at 800-829-1040 or your local Social Security Administration office.
  • Error Code 0502, F1099R-502-01, FW2VI-502, F2439-502, FW2-502 or FW2G-502: One or more of the following does not match the IRS's records: the Employer Identification Number (EIN) (Box b) on Form W-2, , the payer identification number on Form W-2G, the payer identification number on Form 1099-G, the payer identification number on Form 1099-R
What this means: Information provided by the taxpayer on these various forms is not matching what the IRS has in its records. Make sure you have entered all information carefully and checked your entries. If you have entered the information correctly, you need to contact the employer to resolve the discrepancy.
  • Error Code 0510, F1040-510, F1040A-510, F1040EZ-510, F1040-512, F1040A-512, F1040-513, F1040A-513, F1040A-143, F1040A-145 or F1040EZ-039: The taxpayer or spouse has been claimed as a dependent on this return or someone else's return (according to returns the IRS has already received); or a dependent's Social Security Number (SSN) was used as the taxpayer or spouse on another return; or the taxpayer or spouse's SSN has already been used to file a different return.
What this means: Either the taxpayer or spouse's SSN has already been used on a different return, or the taxpayer or spouse's SSN is being used to take a dependency deduction on this same return, a dependent on your return has already filed a return claiming themselves as taxpayer or spouse.
  • Error Code 0507 or R0000-507-01: The dependent's Social Security number cannot be used, for the same purpose, on more than one tax return.
What this means: A dependent claimed on the tax return has already been claimed on another tax return as a dependent and/or for a tax credit. You can either remove the dependent and e-file again, or claim the dependent and file by mail. If you are still eligible to claim the dependency exemption and/or tax credit, you will need to mail a paper tax return.
Tax Compliance Errors
  • Error Code 0010: This is a general reject condition relating to the data that is in the Form and Field indicated. Here are some of the more common reasons for this reject:
    • Incorrect bank Routing Number for direct deposit or electronic withdrawal
    • Incorrect dependent relationship type – you can only enter one of the following: Child, Foster child, Grandchild, Grandparent, Parent, Brother, Sister, Aunt, Uncle, Nephew, Niece, None, Son, Daughter, Other.
    • Incorrect "other" wording in From 1040 Line 60 – you can only enter one of the following literals on this line: EPP, S72P, UT, 453A(c), ADT, 72(M)(5), 453(L)3, 1260(B), NQDC, ISC, HDHP, FITPP. See instructions for more detail.
    • Incorrect proprietor social security number on Schedule C or Schedule CEZ
    • Incorrect "adjustments" wording on Form 1040 Line 60 – you can only enter one of the following literals on this line: RFST, SUB-PAV TRA, UDC, 403(B), 501(C)(18), PPR, FORM 2555, WBF, Jury Pay. See instructions for more detail.
    • Incorrect Employer’s code from Box 12a of W-2
    • No filing status entered on Form 1040, 1040A or 1040EZ
    • Form 8888, Direct Deposit of Refund in More Than One Account– missing routing number entered
    • Form 8615, Tax for Certain Children Who Have Investment Income of More Than $1,900 – missing parent filing status on line c.
    • Form 2555, Foreign Earned Income – incorrect year entered on line 6a and incorrect relationship entered on line 12b.
  • Error Code 0019, R0000-075, IND-003 or IND-004: The routing transit number (RTN) is invalid. The RTN must meet these conditions to be valid: must be 9 numeric digits long; and, the first two positions must be 01 through 12 OR 21 through 32. The depositor account number (DAN) is invalid. The DAN must meet these conditions to be valid: must be alphanumeric (i.e., numbers, letters, and hyphens only); cannot be greater than 17 characters in length; and must not equal all zeros. When the DAN has an entry, or if the RTN has an entry, the checking account box must be checked or the savings account box must be checked.
  • Error Code 0037, F1040-111 or F1040A-004: Form 1040/1040A - The number of dependents listed must equal the total of the following amounts on line 6: Number of Children Who Lived with You, Number of Children Not Living with You, and Number of Other Dependents Listed.
  • Error Code: 0066: When dependent data is entered, the following fields are required for each dependent: (1) dependent's first name, (2) dependent's last name, (3) dependent's social security number, (4) dependent's relationship to you and (5) dependent's year of birth.
  • Error Code 0067: The dependent's first and/or last name is invalid. The dependent's first and last name must meet these conditions to be valid: all characters must be alphabetic (the only special characters allowed are blank space and hyphen (-)); the first name must contain a minimum of one alphabetic character; and the last name must contain a minimum of one alphabetic character.
  • Error Code 0068, F1040-010-01, F1040A-014, F1040-011, F1040A-016, F1040-012, F1040A-017, F1040-309 or F1040A-161: Your Dependent's SSN is either not within the valid range of SSN/ITIN/ATIN's or is the same as your SSN or your Spouse's SSN or another Dependent's SSN .
  • Error Code 0103, F1040-034-01, F1040A-030 or F1040EZ-008: Form 1040/1040A/1040EZ – Total Federal Income Tax withholding shown on tax form must equal the sum of withholding on Other 1099 and AK Dividend, withholding from Schedule K-1. Withholding on Form W-2, withholding on any Form 1099R and withholding on Form W-2G.
  • Error Code 0105, F1040-035-01, F1040EZ-010: When the Routing Transit Number (Form 1040-Line 74b)(Form 1040A-Line 45b)(Form 1040EZ-Line 12b) or Depositor Account Number (Form 1040-Line 74d)(Form 1040A-Line 45d)(Form 1040EZ-Line 12d) has an entry, both are required and either the Checking Account box (Form 1040-Line 74c)(Form 1040A-Line 45c)(Form 1040EZ-Line 12c) must be checked or the Savings Account box (Form 1040-Line 74c)(Form 1040A-Line 45c)(Form 1040EZ-Line 12c) must be checked.
  • Error Code 0121, F1040-044 or F1040A-040: On Form 1040, Pensions Annuities Received (Line 16a) must not equal Taxable Amount (Line 16b). On Form 1040A, Pensions Annuities Received (Line 12a) must not equal Taxable Amount (Line 12b).
  • Error Code 0122: On each Form W-2 that is part of return, the Employer Identification Number (Box b) and the Employer's Name (Box c) must be entered and valid.
  • Error Code 0123: On each Form W-2 that is part of the return, the following fields are required: Name of Reporting Agent or Employer’s Name (Box c); Employer’s Address (Box c); Employee’s name (Box e); Employee’s Address (Box f); Employee’s City (Box f); Employee’s State (Box f); Employee’s Zip Code (Box f); and Wages (Box 1).
  • Error Code 0125: On each Form 1099-R that is part of return, Payer's Name and Payer Identification Number must be entered.
  • Error Code 0134, F1040-051-01 or F1040-052-01: Form 1040 - Based on the boxes you’ve checked, the standard deduction amount you have selected is not correct.
  • Error Code 0139 or FW2-003: On Form W-2, the Social Security Number (Box a) must equal either the Primary Taxpayer's Social Security Number or the Secondary Taxpayer's Social Security Number.
  • Error Code 0159, F1040EZ-016 or F1040EZ-017: On Form 1040EZ, when no one is eligible to claim you as a dependent, then the Combined Standard Deduction and Personal Exemptions must be$9350 when Filing Status is Single or $18700 when Filing Status is Married Filing Joint.
  • Error Code 0160, F1040EZ-018 or F1040EZ-019: Form 1040EZ - When both you and your spouse are eligible to be claimed on someone else’s return, your combined standard deduction cannot exceed $11,400, if Married Filing Jointly and $5,700, if filing Single.
  • Error Code 0290, FW2G-007, F1099R-002, F1099R-003 or F1099R-004: On Forms W-2, W-2G or 1099-R, this code can mean (1) the Payer’s State abbreviation is missing or (2) is not a correct standard Postal abbreviation or (3) the Payer’s ZIP Code is missing or (4) is not consistent with the Payer’s State
  • Error Code 0291, FW2-007 or FW2-008: On Form W-2, the Employer's City (Box c) must contain a minimum of three characters.
  • Error Code 0293: Please review the reason for the reject. If necessary, make the appropriate change and re-submit this return electronically. However, if the reject continues you may want to file this return via U.S. Mail, print this federal return and mail it to the appropriate IRS Service Center.
  • Error Code 0370, F1040-075, F1040-076, F1040A-066 or F1040A-067: For a dependent to be eligible for the child tax credit (Form 1040-Line 52 or Form 1040A-Line 33), the dependent must be your son, daughter, adopted child, grandchild, sister, brother, niece, nephew or foster child, and be under age 17.
  • Error Code 0476, SEIC-F1040-005-02 or SEIC-F1040-006-02: Your Qualifying Child for the Earned Income Credit cannot be over 24 unless the Qualifying Child is a student or permanently disabled and younger than you and your spouse.
  • Error Code 0674, F1040EZ-073, F1040-310, F1040A-165, F1040EZ-074, F1040-311, F1040EZ-075, F1040-312, F1040A-167, F1040EZ-076, F1040-313, F1040-314, F1040-315, F1040-316, F1040-317, F1040-318, F1040A-168, F1040A-169, F1040A-170, F1040A-171, F1040A-172, F1040A-173, F1040EZ-077, F1040EZ-078, F1040EZ-079, F1040EZ-080, F1040EZ-081, F1040EZ-082: Authentication Record - The PIN you entered does not match IRS records.
  • Error Code 0676: Tax Form - When the Filing Status is "2" (Married Filing Jointly), both spouses must enter a valid PIN number.
  • Error Code 0681 or IND-025: When the Self-Select PIN is used, then the following fields must be present; * Primary Date of Birth, * Primary Prior Year Adjusted Gross Income, * Primary Taxpayer Signature and, * Taxpayer Signature Date.
  • Error Code 0689 or IND-689: Authentication Record. The year of Taxpayer Signature Date must equal the current processing year 2011.
  • Error Code 1119, F1040-168-01, F1040-107-01, F1040A or F1040EZ-065: Tax Form - When Direct Deposit information Line 74 on 1040, Line 45 1040A, or Line 12 on 1040EZ is present, Form 8888 may not be present, and vice versa.
  • Error Code 1156, R0000-095-01 or R0000-096-01 Tax Form - If the Primary Taxpayer Signature or the Spouse Signature of the Tax Return is significant, then it must be numeric and not all zeros, and the Authentication Record must be present.