Why Did the IRS Reject My E-file?

E-filing offers a convenient and efficient method for submitting tax returns to the Internal Revenue Service (IRS). This electronic submission process generally speeds up the processing of returns and refunds. While e-filing is largely streamlined, taxpayers occasionally encounter rejections, which can initially seem concerning. An e-file rejection is not a denial of your tax return, but an indication that an error exists requiring correction before the IRS can accept it.

Common Reasons for E-file Rejection

Identity Verification Issues

A frequent cause of e-file rejection involves identity verification. The IRS often verifies identity by requiring the Adjusted Gross Income (AGI) from the prior year’s accepted tax return. An incorrect AGI entry, or an error in a Self-Select Personal Identification Number (PIN) or an Identity Protection PIN (IP PIN) issued by the IRS, leads to rejection. These security measures are in place to prevent unauthorized filings and protect taxpayer information.

Personal Information Mismatches

Mismatches in personal information are another common reason for rejection. Names, Social Security Numbers (SSNs), or dates of birth for the taxpayer, spouse, or dependents must match records on file with the Social Security Administration (SSA) and the IRS. Even a minor discrepancy, like a misspelled name or an incorrect digit in an SSN, can trigger a rejection. Ensuring all identifying information is accurate and consistent with official records is crucial for successful e-filing.

Duplicate Filings

Duplicate filings also result in rejections when the IRS receives more than one electronic submission for the same taxpayer for the same tax year. This can happen if a taxpayer attempts to e-file a return already accepted, or if a previously filed paper return is followed by an e-filed version. The IRS system prevents processing multiple returns, ensuring only one is accepted per taxpayer.

Incomplete or Missing Information

Incomplete or missing information often leads to e-file rejections. This includes blank required fields or missing electronic forms and schedules. For example, failing to include a W-2 form, a 1099 form, or other income statements when required, or omitting responses to specific questions, can prevent acceptance. Tax software often flags these omissions, but overlooking them can still lead to rejection. Errors in bank account information, such as incorrect routing numbers or account numbers provided for direct deposit of a refund or direct debit of a payment, will also cause a rejection.

How to Correct Rejection Issues

Review the Rejection Notice

Upon receiving an e-file rejection notice, review the IRS notification. This notice typically includes a specific error code and a brief description of the issue. Understanding the precise nature of the error is crucial before attempting corrections, as it guides subsequent steps.

Cross-Reference and Verify Data

After identifying the error code, cross-reference it with the information entered into the tax software. If the rejection relates to an AGI mismatch, verifying the prior year’s AGI from official records, such as a copy of the previous year’s return or an IRS tax transcript, is necessary. Personal information discrepancies require a thorough check of names, SSNs, and dates of birth against official documents.

Correct Specific Errors

If the error involves incorrect bank information, verify the routing and account numbers against a current bank statement or check. Any missing information, such as omitted income details or unattached required forms, should be completed and properly associated with the return. Most tax software assists users by highlighting fields or sections requiring attention. Software often provides prompts and guidance based on the rejection code, streamlining corrections and ensuring accurate data entry.

Resubmitting Your E-filed Return

Electronic Resubmission

Once all identified errors have been corrected within the tax software, resubmit the updated return to the IRS. Tax software facilitates this, allowing users to resend the corrected return. Electronic resubmission is usually the quickest way to get the return accepted. The software will package the corrected data and transmit it securely to the IRS.

Paper Submission

If electronic resubmission is not possible due to persistent issues or software limitations, printing and mailing a paper copy of the corrected tax return is necessary. When submitting a paper return, sign it in the designated areas and mail it to the correct IRS address, found in tax form instructions or on the IRS website.

Monitoring Acceptance

After resubmission, monitor for IRS acceptance confirmation. For electronic submissions, this often comes as an email or in-software notification within 24 to 48 hours. For paper submissions, acceptance can take several weeks, and taxpayers can check the status online using the “Where’s My Refund?” tool, though this primarily tracks refund status after acceptance. Adhering to the original tax deadline or promptly resubmitting after a rejection is important to avoid late filing or payment penalties.