How to Fix E-File Reject Code IND-517-01

E-filing tax returns offers convenience, but taxpayers may occasionally encounter rejection codes that require attention. One such code is IND-517-01, which highlights issues with the submitted return. Resolving this error promptly is essential to ensure a smooth filing process and avoid delays or penalties.

Typical Data Errors Causing Code IND-517-01

Rejection code IND-517-01 often stems from discrepancies in taxpayer identification information. Common issues include mismatches between the Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) entered on the tax return and the records held by the Social Security Administration (SSA) or Internal Revenue Service (IRS). These mismatches may result from typographical errors, outdated information, or unreported changes in personal details.

Incorrect filing status is another frequent cause. For instance, taxpayers may mistakenly select “Head of Household” without meeting the necessary criteria, such as being unmarried and covering more than half the cost of maintaining a home for a qualifying person during the tax year.

Errors in dependent information also contribute to this rejection. If dependent names or SSNs do not match IRS records or if a dependent is claimed by more than one taxpayer, the return may be rejected. This is particularly common in cases of shared custody, where both parents may attempt to claim the same child.

Required Updates on Tax Forms

To address rejection codes like IND-517-01, taxpayers must ensure their tax forms contain accurate and up-to-date information. This includes verifying that personal data, such as names, addresses, and SSNs, are consistent with official records. Any changes in marital status, dependents, or income sources should be properly documented to comply with IRS guidelines.

Staying informed about changes in tax laws is equally important. For example, the Tax Cuts and Jobs Act introduced updates affecting deductions and credits. Reviewing these changes can help taxpayers confirm eligibility for credits like the Child Tax Credit or Earned Income Tax Credit and prevent errors.

Taxpayers should also be mindful of filing deadlines, including extensions. In 2024, the standard deadline for individual tax returns is April 15, with extensions available until October 15. Submitting accurate returns on time reduces the likelihood of rejection codes.

Correcting Identity Validation Issues

Identity validation is a critical part of the e-filing process. Taxpayers must ensure that all identification details, such as names and birthdates, match official records. Recent changes, such as name changes due to marriage or divorce, should be updated with the SSA to avoid mismatches that trigger rejection codes like IND-517-01.

For those with a new ITIN, it’s essential to ensure the updated number is reflected on all tax documents. If identity theft is suspected, taxpayers should notify the IRS immediately. Programs like the IRS Identity Protection Personal Identification Number (IP PIN) offer an added layer of security during the e-filing process.

The Resubmission Procedure

Resubmitting a tax return after receiving rejection code IND-517-01 requires careful review. Taxpayers should examine the rejection notice to understand the specific error, then make the necessary corrections using their tax preparation software. This may involve updating personal information, revising entries, or ensuring all supporting documents are accurate.

Before resubmitting, it’s important to thoroughly review the entire tax return. Double-checking figures, ensuring compliance with tax codes, and using validation tools within tax software can help catch potential errors. Consulting a tax professional may also provide clarity and guidance.

Confirming Acceptance After Corrections

After making corrections, taxpayers should confirm that the revised return has been accepted by the IRS. Most e-filing platforms provide updates on the status of submitted returns. A confirmation notice from the IRS, typically sent within 24 to 48 hours, indicates acceptance for processing. During peak times, this process may take longer.

Taxpayers can also verify acceptance using the IRS “Where’s My Refund?” tool or the IRS2Go mobile app, which provide real-time updates on return status and refunds. Retaining confirmation documents and correspondence from the IRS is essential for future reference, especially in case of audits or inquiries. Keeping organized records ensures a smoother resolution of any post-filing issues.