Why Does the IRS Say My Information Doesn’t Match Their Records?

Receiving a notification from the IRS that your information doesn’t match their records can be both perplexing and concerning, as it may delay tax processing or refunds and impact financial planning. Understanding the reasons for these mismatches can help taxpayers address them efficiently.

Name or Address Mismatches

Discrepancies in name or address often result from typographical errors or outdated information. For instance, if a taxpayer changes their name due to marriage or divorce and doesn’t update it with the Social Security Administration (SSA), the IRS may not recognize the new name, causing delays. The name on your tax return must align with SSA records to avoid such issues.

Address mismatches can also cause missed communication. Taxpayers who move should use IRS Form 8822 to officially update their address. Ensuring your tax return address matches IRS records is essential for timely correspondence.

Incorrect Tax ID

Errors in Tax Identification Numbers (TIN), such as Social Security Numbers (SSN) for individuals or Employer Identification Numbers (EIN) for businesses, are a frequent source of mismatches. These mistakes, including transposed numbers or failing to update a new TIN, can lead to delays or rejections.

Businesses should pay close attention to their EIN, particularly after structural changes like mergers. Using an outdated EIN can cause discrepancies. Verify your EIN through IRS correspondence or the Business & Specialty Tax Line before filing.

In cases of identity theft, a compromised TIN can create complications. The IRS Identity Protection PIN (IP PIN) program provides an additional layer of security by issuing a unique identifier for tax filings.

Filing Status Inconsistencies

Choosing a filing status that doesn’t align with your situation can lead to mismatches. For example, selecting “Married Filing Jointly” instead of “Married Filing Separately” affects deductions and credits. Similarly, taxpayers who are divorced or separated might mistakenly file as “Single” instead of “Head of Household,” which has specific requirements, such as paying more than half the cost of maintaining a home for a qualifying person. Misjudging these criteria can trigger scrutiny.

Widows and widowers may qualify for “Qualifying Widow(er) with Dependent Child” status for up to two years after a spouse’s death. Correctly understanding and applying these statuses is crucial to avoid errors.

Separate E-Filing Records

Filing multiple returns within a household or business can create confusion if the IRS receives conflicting information. For instance, discrepancies between personal and business returns in reported income, deductions, or credits may prompt an investigation or delay.

When using third-party e-filing platforms, ensure transmitted data matches IRS records. Errors during transmission, such as incorrect data mapping, can result in mismatches. Verify all entries before submission and use the IRS’s e-file status tool to confirm acceptance. Retain digital copies of submissions for reference.

Identity Verification Holds

Identity verification holds occur when the IRS needs to confirm a taxpayer’s identity, often due to discrepancies or unusual patterns, such as a sudden income change or a new bank account for direct deposit. Taxpayers may receive letters like 5071C or 4883C requesting verification, which generally involves providing specific return details or visiting an IRS office with identification.

Using the IRS online identity verification tool can expedite this process. Responding promptly to these requests is essential to avoid extended delays or rejection.

Record Processing Delays

Processing delays often result from the volume of returns the IRS handles, particularly during peak filing seasons. Late-year tax law changes and an increase in e-filed returns can compound these delays.

To minimize delays, ensure returns are accurate and complete, double-checking entries, calculations, and required forms. The “Where’s My Refund?” tool provides updates on return status. Filing early can help avoid the peak season backlog, reducing wait times.