Why Is My Amended Tax Return Rejected With Code IND-689-01?

Filing an amended tax return can be frustrating, especially when it gets rejected with error code IND-689-01. This rejection indicates a discrepancy preventing the IRS from accepting your submission electronically. Understanding the cause helps resolve the issue and ensures your tax records are updated correctly.

Several common issues can trigger this rejection, including mismatched taxpayer details, conflicting dependent claims, and discrepancies in employer-reported income. Identifying the exact cause will help you correct the problem and successfully resubmit your amended return.

Mismatched Taxpayer Identification

A frequent reason for IND-689-01 rejection is a mismatch between the taxpayer’s identification details and IRS records. This usually involves an incorrect Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for the primary filer or spouse. Even a minor mistake, such as a transposed digit or a name that doesn’t exactly match Social Security Administration (SSA) records, can cause rejection.

The IRS cross-references tax return information with SSA records. If the name and SSN combination don’t match, the system automatically rejects the submission. This issue is common for individuals who have changed their name due to marriage or divorce but haven’t updated their SSA records. In these cases, the IRS still recognizes the name associated with the SSN before the change.

Another potential cause is an expired ITIN. ITINs that haven’t been used on a tax return for three consecutive years automatically expire. If an expired ITIN is used, the return will be rejected until the taxpayer renews it through Form W-7.

Conflicting Dependents’ SSN

A rejected amended return with error code IND-689-01 can also result from a dependent’s SSN being claimed on another return. The IRS does not accept an electronically filed return if the same dependent appears on multiple filings. This often happens in cases of divorced or separated parents, where both attempt to claim the same child.

IRS rules grant the right to claim a dependent based on custody and other eligibility factors. The custodial parent—defined as the one with whom the child lived for the greater number of nights during the tax year—has the right to claim the child. If both parents had equal custody, the IRS generally awards the exemption to the parent with the higher adjusted gross income (AGI). A noncustodial parent can only claim the child if the custodial parent signs Form 8332, releasing the exemption. If both parents attempt to claim the dependent without an agreement, the IRS may reject one or both returns, requiring a paper submission with supporting documentation.

Another reason for this rejection is when a dependent’s SSN has already been used fraudulently or mistakenly. Identity theft can result in an SSN being used without authorization, creating a conflict when the rightful taxpayer submits their return. Additionally, relatives who provide financial support for a child or other dependent may mistakenly assume they qualify to claim them, not realizing that IRS guidelines require the dependent to meet specific residency and support tests.

Employer Data Verification

A common cause of IND-689-01 rejections involves discrepancies between the income and withholding information reported on the amended return and what the IRS has received from employers. The IRS cross-checks tax return data against Form W-2 and Form 1099 filings submitted by businesses. If the numbers do not match, the system flags the discrepancy, leading to a rejection.

Employers sometimes submit incorrect W-2s due to payroll miscalculations or reporting mistakes. If a taxpayer receives a corrected W-2 (Form W-2c) but fails to update their amended return accordingly, the IRS may reject the submission. Similarly, independent contractors receiving Form 1099-NEC may encounter issues if the payer reports a different income amount than what was filed.

Timing can also be a factor. Employers and payers must submit W-2s and 1099s to the SSA and IRS by January 31 each year. If an amended return is filed before the IRS has fully processed these documents, the system may not recognize the reported income, triggering a rejection. This is particularly common for taxpayers who amend their returns early in the year before wage data is fully integrated into IRS records.

E-Filing Authentication Errors

The IRS requires specific authentication details to verify the identity of the taxpayer submitting an amended return electronically. A common reason for IND-689-01 rejections is an authentication failure due to incorrect or missing data.

One frequent issue involves the prior-year Adjusted Gross Income (AGI). When e-filing an amended return, the IRS system cross-references the AGI from the originally filed return of the previous tax year. If there is any discrepancy—such as entering an incorrect AGI or using an AGI from an amended return instead of the original filing—the submission will not be processed.

Another authentication failure occurs when the IRS cannot match the taxpayer’s electronic filing PIN or Self-Select PIN with its records. Taxpayers who previously filed using a different PIN or changed their filing method (for example, switching from a tax preparer to self-filing) may unknowingly enter outdated information, leading to a rejection. Additionally, taxpayers issued an Identity Protection PIN (IP PIN) due to prior identity theft must ensure they use the most current one issued by the IRS for that tax year. Using an expired or incorrect IP PIN will result in an immediate rejection.

Consequences of Duplicate Submissions

Submitting multiple amended returns for the same tax year can lead to an IND-689-01 rejection, as the IRS system is designed to prevent duplicate filings. If an amended return has already been processed or is still under review, any additional submission with the same taxpayer details and tax year will be flagged.

Processing an amended return can take up to 20 weeks, depending on the complexity of the changes and IRS backlog. Filing another amendment before the first one is resolved can not only trigger a rejection but may also cause delays. The IRS does not allow multiple amended returns to be e-filed for the same tax year, so if additional corrections are needed after an initial submission, taxpayers must wait for the first amendment to be processed before filing a second one by mail.

If a taxpayer files an amended return and later realizes an error, submitting another correction prematurely can lead to conflicting records. If the IRS receives multiple amendments with different figures, it may require additional verification, potentially resulting in an audit or a request for supporting documentation. To avoid these complications, taxpayers should use the IRS “Where’s My Amended Return?” tool to check the status before deciding whether further action is necessary.