Tax Return Rejected: What to Do If Your SSN Was Already Used

Discovering that your tax return has been rejected because your Social Security Number (SSN) was already used can be both alarming and frustrating. This issue delays the processing of your return and may signal potential identity theft, requiring immediate attention to protect your personal information.

Common Reasons for SSN Rejection

When a tax return is rejected due to an SSN issue, understanding the underlying causes is essential to address the problem effectively.

Typographical Mistakes

Typographical errors, such as transposed digits or incorrect numbers, are a frequent cause of SSN rejection. These mistakes result in the IRS rejecting the return because the SSN doesn’t match their records. Taxpayers should verify their SSN against their Social Security card and ensure the information on the return is accurate. Tax preparation software with error-checking features can help catch these mistakes. Reviewing previous tax returns for consistency in the SSN used can also identify discrepancies. To resolve this, correct the error and re-submit the return.

Duplicate Return Filed

A tax return may be rejected if a duplicate return has already been filed under the same SSN. This can occur if a taxpayer or their spouse accidentally submits the return twice. Confirm with any involved parties whether a duplicate submission happened. IRS guidelines recommend contacting your tax preparer or software provider to verify submission status. Reviewing IRS notices for indications of duplicate filings can also provide clarity. If a duplicate filing is confirmed, the taxpayer may need to wait for the IRS to respond or submit a paper return with an explanation.

Unauthorized Use of SSN

Unauthorized use of an SSN, often linked to identity theft, is a serious issue. This occurs when someone uses a taxpayer’s SSN to file a fraudulent return and claim a refund. Victims should file Form 14039, Identity Theft Affidavit, with the IRS to address the fraudulent activity. Obtaining a copy of your credit report to check for other signs of identity theft is also advisable. Consider using monitoring services to detect suspicious activities. Strengthening account security by updating passwords and implementing additional security measures can help prevent future misuse.

Verification Procedures with the IRS

Dealing with SSN rejection requires navigating IRS verification procedures. Responding promptly to IRS notices is crucial, as they often include a unique verification code or instructions for confirming identity through the IRS Identity Verification Service. This online platform simplifies the process, allowing taxpayers to verify their information quickly.

If online verification isn’t an option, taxpayers can visit a local IRS office. Scheduling an appointment through the IRS Contact Center helps minimize wait times and ensures all required documentation is ready. Essential documents include a government-issued ID and relevant tax records. In some cases, the IRS may request additional information to confirm the taxpayer’s identity and validate the return.

Correcting the Filing and Re-Submission

Resolving a rejected tax return due to SSN issues requires identifying the problem and taking corrective action. Gather all necessary documentation, such as W-2 forms and 1099s, to verify the accuracy of the re-submitted information. Use tax preparation software compliant with the latest IRS e-filing standards to avoid further errors.

Before re-submitting, carefully review the return for additional mistakes, such as misreported income or overlooked credits. Ensure all applicable tax credits, like the Earned Income Tax Credit (EITC), are accurately claimed. A meticulous review of the entire return minimizes the risk of future discrepancies.

Handling Potential Identity Theft

Addressing potential identity theft demands proactive measures to protect financial and personal information. Monitor financial and credit card statements for unauthorized transactions. Set up alerts for any new credit inquiries or account activities to detect suspicious behavior early.

Engage with credit reporting agencies to place a fraud alert or credit freeze. A fraud alert requires creditors to verify your identity before issuing credit, while a credit freeze restricts access to your credit report. Both options offer protection, and choosing the right one depends on your circumstances. These steps help safeguard against further identity theft and limit potential damage.