How Many Times Can You E-File After Being Rejected?

Filing taxes electronically has become the preferred method for many, offering convenience and speed. However, e-filing can sometimes result in a rejection notice, leaving taxpayers unsure of their next steps. Understanding how to handle these rejections is key to a successful filing experience.

Limits on Electronic Resubmission

The IRS permits taxpayers to resubmit their e-filed returns up to five times. This limit emphasizes the importance of accuracy and resolving errors quickly. Common mistakes include incorrect Social Security numbers or mismatches with IRS records. If the five-attempt limit is reached without success, taxpayers must resort to filing a paper return, which often requires additional documentation and involves longer processing times.

Potential Issues Triggering Rejection

Discrepancies in taxpayer identification information are a frequent cause of rejection. Errors like mismatched names or Social Security numbers between the tax return and Social Security Administration records are often due to typos or failure to update personal information after life events, such as marriage or name changes.

Income reporting errors also frequently result in rejections. Taxpayers may fail to report all sources of income, including wages, interest, dividends, and self-employment earnings. The IRS cross-references tax returns with data from employers and financial institutions, and any inconsistencies can trigger rejection. A thorough review of W-2s, 1099s, and other income statements is crucial to avoiding this issue.

Dependent-related claims are another common problem. Errors such as claiming an incorrect number of dependents or providing inaccurate information can lead to rejection, especially in cases of shared custody or situations where multiple taxpayers attempt to claim the same dependent. The IRS has systems in place to detect duplicate claims, and inconsistencies will result in a rejected return.

When to Opt for Paper Filing

Switching to paper filing may be necessary in certain situations. Complex tax scenarios, such as intricate real estate transactions or uncommon deductions and credits, often require detailed explanations and documentation that are better suited to paper submissions.

In cases of identity theft or fraud alerts, the IRS may recommend paper filing to prevent unauthorized electronic submissions. This method allows taxpayers to include an Identity Theft Affidavit (Form 14039) to notify the IRS of potential issues. Additionally, certain tax credits and deductions, like the Foreign Earned Income Exclusion, may necessitate supporting documents that are more easily handled through paper filing.