What Does Reject Code IND-996 Mean and How Can You Fix It?

Encountering an error code while filing taxes can be frustrating, particularly when it disrupts the e-filing process. One such code taxpayers might face is IND-996, which impacts electronic tax submissions. Understanding this code and addressing it promptly is essential for avoiding delays in processing returns and potential penalties.

Technical Meaning of Code IND-996

Code IND-996 is a rejection code from the Internal Revenue Service (IRS) that signals discrepancies in taxpayer information during e-filing. It occurs when details like Social Security numbers, names, or filing statuses on the tax return don’t align with IRS records. For example, a name change due to marriage or divorce that hasn’t been updated with the Social Security Administration can trigger this rejection. Similarly, a mismatch in filing status, such as transitioning from “single” to “married filing jointly,” can result in the code.

When the Code Occurs

IND-996 arises during the IRS’s verification process, which cross-checks taxpayer information with its database. This ensures accuracy and prevents fraudulent filings. Common causes include incorrect Social Security numbers or filing statuses that don’t align with IRS records. Taxpayers who recently changed their marital status or personal details are especially prone to this issue if updates haven’t been processed by the IRS or other agencies.

Reviewing Personal and Spousal Information

Ensuring accurate personal and spousal information is critical for resolving IND-996. Married couples should verify that both partners’ names, Social Security numbers, and other details match official documents like Social Security cards and prior-year tax returns. Changes in marital status, such as marriage or divorce, often lead to discrepancies if records haven’t been updated. Reviewing this information thoroughly can help identify and resolve inconsistencies before filing.

How to Update Filing Details

To resolve discrepancies causing IND-996, taxpayers must update their information with relevant government agencies. This often starts with the Social Security Administration for name changes or other personal updates. Once verified, taxpayers should ensure their filing status is accurately reflected on their tax return. For example, transitioning to “head of household” or “married filing jointly” must be clearly noted to avoid further issues.

Preventing Repeated E-File Rejections

Avoiding future issues like IND-996 requires proactive steps. Regularly review IRS records to ensure personal information and filing details are up to date. Many tax preparation software programs can cross-check data against IRS databases, flagging potential errors before submission. For complex situations or major life changes like marriage, divorce, or the birth of a child, consulting a tax professional can provide valuable guidance. Their expertise can help navigate the nuances of filing status changes and prevent repeated rejections.