Why Is the IRS Rejecting My Return? And How to Fix It

An IRS tax return rejection means your e-filed return was not accepted for processing due to an error, not that it is being audited. Rejections typically stem from specific data mismatches or technical issues rather than concerns about the financial content of your tax return. This article explains common rejection reasons and how to resolve them.

Common Reasons for E-file Rejection

One of the most frequent reasons for an e-file rejection involves identity and personal information mismatches. This occurs when details such as Social Security Numbers (SSN), Individual Taxpayer Identification Numbers (ITIN), names, or dates of birth for the taxpayer or any dependents on the return do not precisely match the records on file with the Social Security Administration (SSA) or the IRS. Even a minor typo can lead to a rejection.

Another common cause for rejection is an incorrect Adjusted Gross Income (AGI) from the prior year or an erroneous Self-Selected Personal Identification Number (PIN). The IRS uses your prior year’s AGI or a self-selected PIN as a security measure to authenticate your identity when you e-file. If the entered AGI or PIN does not match IRS records, the return will be rejected. You can find your accurate prior year AGI on your previous year’s tax return, typically Line 11 of Form 1040, or by using the IRS Get Transcript tool.

Duplicate filings also result in rejections. This happens if the IRS receives more than one e-filed return for the same taxpayer identification number, or if another party has already filed a return using your SSN or ITIN. This can sometimes indicate identity theft, where a fraudulent return was submitted before yours.

For certain taxpayers, an Identity Protection PIN (IP PIN) is mandatory, and an incorrect or missing IP PIN will cause a rejection. An IP PIN is a six-digit number issued by the IRS to help prevent the fraudulent use of your Social Security number on tax returns. If you are assigned an IP PIN, you must include it on your tax return for it to be accepted, and a new one is issued each year.

While less common for initial rejections, incorrect bank account information for direct deposit refunds can sometimes trigger an e-file rejection. Errors in routing or account numbers usually lead to a delayed refund or a mailed check, but in some cases, the system might flag it earlier. Other technical issues, such as corrupted tax files or using outdated tax software versions, can also rarely cause a return to be rejected.

Decoding Your Rejection Notice

When your e-filed tax return is rejected, your tax software provider or e-file service will send you a rejection notice. This notice often includes a specific rejection code and a brief message explaining the error.

You should carefully review this notice to locate the exact rejection code and accompanying description. These codes often start with letters followed by numbers, like “R0000-500-01” for an SSN mismatch or “IND-031-04” for an AGI error. The message will specify which piece of information needs correction, such as a name, Social Security number, or prior-year AGI.

Understanding these codes helps pinpoint the specific issue that caused the rejection. For instance, if the notice indicates a dependent’s SSN mismatch, you will know to verify that dependent’s information. This feedback from the IRS’s e-file system helps you identify the error needing correction.

Steps to Correct and Resubmit

Once you have identified the specific reason for your tax return’s rejection from the notice, the next step is to correct the error within your tax software or on the paper forms. If the rejection notice indicated an SSN mismatch for yourself or a dependent, verify the Social Security number against the official Social Security card or other government-issued documents. For an AGI rejection, locate your correct prior year Adjusted Gross Income from your previous tax return or through the IRS’s online tools and update the field in your software.

After making the necessary corrections, you can typically resubmit your return electronically through your tax software. This process often involves re-transmitting the updated file, and you generally do not incur additional fees for resubmitting a rejected return.

In some situations, electronic filing may not be possible after repeated rejections, necessitating a paper submission. This might occur if multiple e-file attempts fail, or if certain forms on your return are not supported for e-filing by your software. When paper filing, ensure the return is signed, all required forms and schedules are attached, and it is mailed to the correct IRS address.

Resubmit your corrected return promptly, especially if the original filing was close to the tax deadline. If your return was timely filed and then rejected, the IRS generally provides a grace period, typically five to ten calendar days after the rejection, for you to correct and resubmit electronically. Resubmitting within this “perfection period” ensures your return is considered timely filed. Always confirm acceptance after resubmission to ensure the process is complete.