IRS Error Code 101: How to Fix a Rejected Tax Return

An IRS rejection code like R0000-500-01 signals that your electronically filed return was not accepted. This rejection occurs because the personal identifying information for the primary taxpayer does not align with the data the IRS has on file. This is a common issue that can be corrected. This error is not an audit or a penalty, but a security measure to prevent identity fraud and ensure accuracy. Once the information is corrected, the return can be resubmitted.

Understanding the Cause of the Rejection

When you e-file your tax return, the IRS computer systems perform an automatic check of your core data. The system validates your Social Security Number (SSN) and your last name against the files maintained by the Social Security Administration (SSA).

A rejection is triggered if your information does not match the government’s records. The IRS validates your SSN against a “Name Control,” which is typically the first four letters of your last name. For hyphenated last names, the Name Control consists of the first four letters of the combined, unhyphenated name.

A mismatch could be the result of a simple typographical error, such as transposing two numbers in your SSN or misspelling your name. It also frequently happens when a taxpayer has recently married or divorced and changed their name but has not yet officially updated their records with the SSA. It can take up to 10 days for the SSA to notify the IRS of the change, and filing before the IRS database is updated will result in a rejection.

Information Needed to Verify Your Identity

Before attempting to correct the error, it is important to gather the official documents that contain the correct information. The most direct source for your legal name and Social Security Number is your Social Security card. Locate your card and carefully compare the name and number printed on it with the information you entered into your tax preparation software. Pay close attention to details like hyphens, suffixes, and the exact spelling of your last name.

For your date of birth, your birth certificate is the definitive source document. Confirming it against an official record eliminates the possibility of a simple data entry mistake.

Step-by-Step Guide to Correcting and Refiling

Log back into the tax preparation software you used to file your return. You do not need to start your return over from scratch; you simply need to edit the incorrect information. Most software platforms will have a clear indicator or alert that your return was rejected, guiding you toward the correction process.

Navigate to the section of the software dedicated to personal or taxpayer information. Carefully re-enter your last name, Social Security Number, and date of birth, making sure each character and number aligns with what is shown on your Social Security card and birth certificate.

After you have corrected the information and saved the changes, the tax software will guide you through the process of re-transmitting your return. You will need to follow the on-screen prompts to re-submit the corrected return electronically to the IRS. If the return is rejected a second time after you have verified that all information from your documents is entered correctly, you may need to print a paper copy of your tax return and mail it to the IRS to ensure you meet the filing deadline.