How to Fix E-File Reject IND-524 on Your Tax Return
Resolve E-File Reject IND-524 with our guide on verifying data and adjusting key details for a successful tax return resubmission.
E-filing tax returns has become a convenient way for many taxpayers to submit their documents. However, encountering an e-file rejection code like IND-524 can disrupt this process. Understanding how to address such issues promptly is essential for ensuring a smooth filing experience.
Why IND-524 Occurs
The IND-524 rejection code is linked to discrepancies in the taxpayer’s identity information, particularly the Adjusted Gross Income (AGI) from the previous tax year. The IRS uses the AGI to verify identity, and if the entered AGI doesn’t match IRS records, the e-file submission will be rejected. This mismatch can happen due to entering an incorrect AGI, using the AGI from an amended return, or delays in IRS processing that result in outdated records.
Another cause of the IND-524 error involves the Identity Protection Personal Identification Number (IP PIN). Taxpayers who have experienced identity theft receive an IP PIN from the IRS to prevent fraudulent filings. If the IP PIN is entered incorrectly, omitted, or if an outdated number is used, the e-file will be rejected.
In some instances, the error stems from issues with the taxpayer’s filing status. For example, changes in marital status that are not updated in IRS records, or discrepancies in Social Security Numbers (SSNs) or names due to recent life events like marriage or divorce, can lead to rejection.
Data Verification Steps
To resolve the IND-524 error, carefully review the data submitted in your tax return. Start by confirming the Adjusted Gross Income (AGI) from the prior year. Access the IRS’s online resources or your tax filing software to ensure the AGI matches IRS records exactly. If you amended your return last year, use the AGI from the original return, not the amended version.
Verify your Identity Protection Personal Identification Number (IP PIN). Retrieve the current IP PIN from IRS correspondence or through the IRS’s online portal. Since the IP PIN changes annually, ensure you are using the latest one. If identity theft is a concern, contact the IRS Identity Protection Unit for assistance.
Check your filing status and personal information, such as your Social Security Number (SSN) and name. If marital status or legal name changes have occurred recently, confirm these updates are reflected in IRS records. Submit Form SS-5 to the Social Security Administration for name changes or Form 8822 to the IRS for address changes.
Adjusting Key Return Details
Addressing the IND-524 error requires careful attention to the details in your tax return. Begin by reviewing your filing status, as changes in marital status or dependents can significantly impact your tax obligations. For instance, transitioning from single to married filing jointly affects deductions and tax brackets. Ensure these changes are accurately reported.
Examine income sources to ensure all are reported correctly. This includes income from self-employment, investments, or rental properties. Pay close attention to Form 1099s and W-2s to ensure they align with IRS records. Misreporting income can lead to audits or penalties. Tax software or professional assistance can help verify accuracy.
When claiming deductions and credits, ensure compliance with current tax codes. For example, the Child Tax Credit and Earned Income Tax Credit have specific eligibility requirements. Misapplying these credits can result in errors or penalties. Consult IRS publications, such as 972 and 596, for clarity.
Completing the Resubmission
After verifying and adjusting your tax return, focus on the resubmission process. Revisit your tax filing software to input the revised data and double-check entries for accuracy. Many tax software platforms include error-checking tools to help identify potential problems before submission.
Be mindful of deadlines. The IRS typically allows a specific window for resubmission without penalties, often up to five days after rejection. Submit within this timeframe to avoid late filing fees. Under Internal Revenue Code Section 6651, failing to file on time can result in a penalty of 5% of unpaid taxes each month, up to a maximum of 25%. Timely resubmission is essential to minimize financial consequences.