How Do I Fix Reject Code IND-901 on My Tax Return?

Seeing a tax return rejected with code IND-901 can be frustrating, especially if you’re unsure what went wrong. This error means the IRS couldn’t verify your identity based on the information provided. Since electronic filing relies on matching key details with IRS records, even small discrepancies can trigger a rejection.

Reason for Mismatched Data

A rejected tax return with code IND-901 often results from discrepancies between the information submitted and IRS records. One common issue is an incorrect or outdated Adjusted Gross Income (AGI) from the prior year. The IRS uses this figure to verify electronic filings, and if the number entered doesn’t match their records, the return may be rejected. This can happen if a taxpayer references the wrong tax document, such as a draft return instead of the final version accepted by the IRS.

Name changes can also cause problems. If a taxpayer recently got married or divorced and changed their last name, but the IRS still has the previous name on file, the system may not recognize the return. This is particularly common when the name on a W-2 or 1099 differs from what is used on the tax return.

Filing status inconsistencies may also trigger IND-901. If a taxpayer selects a different filing status than what the IRS expects based on prior returns, the system may flag the discrepancy. For example, someone who filed jointly last year but now files as single due to a separation may encounter issues if the IRS hasn’t processed the change.

Identity Confirmation Requirements

To successfully file a tax return after receiving reject code IND-901, taxpayers must verify their identity with details that match IRS records. One way to confirm identity is by ensuring the correct prior-year PIN or Self-Select PIN is used. Taxpayers who filed electronically in the past may have chosen a five-digit PIN, which serves as an additional layer of authentication. Entering this PIN incorrectly can result in rejection.

Another method involves using an Identity Protection PIN (IP PIN), issued by the IRS to individuals who have been victims of identity theft or opted into the program. This six-digit number changes annually and must be entered exactly as provided by the IRS. If misplaced, taxpayers can retrieve it through the IRS’s online portal.

Those who did not file a return in the previous year must indicate this properly. The IRS expects a “0” to be entered for the prior-year AGI in these cases. Entering any other amount will lead to a mismatch and prevent successful submission. This is a common mistake for first-time filers or those who skipped a year due to income thresholds.

Social Security Records Conflicts

A mismatch between Social Security Administration (SSA) records and the IRS database can also lead to a rejected tax return under code IND-901. The IRS verifies taxpayer identities using Social Security Numbers (SSNs), so any discrepancy in SSA records can cause an issue. This often happens when an SSN is entered incorrectly on a tax return, either due to a typographical error or because the filer is using an SSN that hasn’t been properly issued or recognized by the SSA.

Birthdate mismatches can also cause problems. The IRS uses birthdates to verify eligibility for certain tax credits, such as the Child Tax Credit and Earned Income Tax Credit. If a taxpayer’s birthdate on record with the SSA does not match what is entered on the tax return, the IRS may reject the return. This issue is more common for individuals born outside the U.S. who later became citizens, as errors in federal databases can occur.

SSNs flagged for fraud or identity theft can also lead to rejection. If a taxpayer’s SSN has been previously misused or reported as compromised, the IRS may automatically reject an e-filed return unless additional identity verification steps are taken. In these cases, the taxpayer may need to contact the SSA to confirm that their records have not been altered.

Previously Accepted Return Issues

A return being rejected under code IND-901 can be confusing when the same taxpayer information was accepted in previous years. One reason for this sudden rejection is a change in IRS verification processes. The IRS updates its fraud detection systems annually, and a return that passed automated checks before may now trigger additional scrutiny due to enhanced security measures. These updates may include stricter matching requirements for taxpayer identification details or new algorithms designed to flag potential identity theft.

Another possibility is that the taxpayer’s prior return contained an unnoticed discrepancy that is now being flagged. The IRS occasionally refines its recordkeeping and matching protocols, which means inconsistencies that previously went undetected—such as minor formatting differences in name entries or slight variations in reported income details—can now result in rejection. This is particularly relevant for taxpayers who use third-party tax software, as autofill features may introduce formatting differences from year to year.

Potential Issues With Dependent Claims

Taxpayers claiming dependents on their return may encounter reject code IND-901 if the IRS cannot verify the dependent’s identity or if another filer has already claimed them. Since dependents are tied to specific Social Security Numbers, any inconsistency in how their information is reported can prevent the return from being accepted. This often happens when a dependent’s name or SSN does not match what the Social Security Administration has on file. Even minor errors, such as using a nickname instead of a legal name, can cause a rejection.

A more complex issue arises when multiple taxpayers attempt to claim the same dependent. This commonly occurs in cases of divorced or separated parents, where both may believe they have the right to claim a child. The IRS follows strict tie-breaker rules, typically granting the exemption to the parent with whom the child lived for the majority of the year. If both parents file electronically and claim the same dependent, the second return submitted will be rejected. Resolving this requires filing a paper return and providing supporting documentation, which can significantly delay processing.

In some cases, a dependent’s SSN may have been used fraudulently on another return, either due to identity theft or an error by another filer. If a taxpayer suspects this has happened, they may need to contact the IRS and provide proof of their right to claim the dependent. This could involve submitting birth certificates, custody agreements, or other legal documents. The IRS may also require additional identity verification steps to ensure the rightful taxpayer is the one claiming the dependent.