Practical Ways To Avoid Getting Your Tax Return Rejected

The tax season can be stressful for many people, and the last thing anyone wants is to have a tax return rejected. Not only is it frustrating, but it can also lead to penalties and fines. However, it is crucial to understand why a tax return can be rejected and what actions can be taken to rectify the situation.

In this article, we will discuss the most common reasons why tax returns are rejected and provide practical tips to help prevent them from happening.

What Are the Common Reasons for Rejected Tax Returns?

1. Incorrect Personal Information

One of the most common reasons why the IRS rejects a tax return is due to incorrect information. This can include typos in your name, social security number, or other identifying information. Fixing typos and misspellings in your tax return can be relatively easy and straightforward. You can correct them online and resubmit your tax return for e-filing.

2. Claimed Dependent On Another Return

If you claim a dependent on your tax return and someone else has also claimed the same dependent, it can result in a rejected tax return. This mistake commonly happens with divorced or unmarried spouses who both claim the same child. The IRS usually accepts the first filed return and rejects any subsequent filings.

3. Duplicate Tax Return Filed

If another individual has already filed a tax return using your taxpayer number (Social Security Number or Tax Identification Number), the IRS may reject your tax return. This issue usually arises if you or your spouse has already filed a return for the current year. However, it’s also possible that you or your spouse has fallen victim to identity theft and someone else has fraudulently filed a tax return using your taxpayer number.

4. Mismatch EIN

If the Employer Identification Number (EIN) on your tax return doesn’t match the information that the IRS has in its database, the agency will reject your tax return.

5. Wrong Adjusted Gross Income (AGI)

To ensure secure e-filing, the IRS checks your identity by requesting the adjusted gross income (AGI) from your recent tax return. If you provide an incorrect AGI, perhaps because you lost your old tax return and are guessing the number, the IRS may also reject your return.

6. Unsigned Tax Return

Failure to sign your tax return may result in rejection by the IRS. The IRS requires that all tax returns must have signatures. This is a way of confirming that the information you have provided is true and accurate to the best of your knowledge. This applies to both manual and electronic tax filers.

How Do You Know If Your Tax Return Is Rejected?

If there’s an issue with your tax return, the IRS will typically notify you by mail. In rare cases, an IRS agent may contact you by phone or visit your residence. However, this only happens after sending multiple written notices beforehand. 

For those who submitted their tax returns electronically, the IRS will provide an error code and explain why the tax return was not accepted. If a company electronically filed your return on your behalf, they are responsible for informing you of any errors and correcting the return.

What To Do When the IRS Rejects Your Return

1. Find out the reason for rejection

If you e-filed your tax return, the IRS will typically notify you within a few hours if it didn’t accept your return. For mailed returns, the IRS will send a notice to your address. The letter will include a code that explains the specific reason for rejection. Some common reasons include:

• Typos in name or mismatched social security number
• Missing signature on a paper return
• Dependent claimed on a previously submitted tax return
• Duplicated tax return

2. Correct the error

Once you find the mistake, the next step is to fix it. If you file using tax software, you can correct the error right in the program. If you have a tax pro helping you, it’s their job to fix it for you. However, they may ask for additional information if necessary.

Remember, don’t file an amended return for a rejected one. You only do that if the IRS has already accepted your tax return, but you need to make changes, such as to your income, filing status, deductions, or tax amount.

3. Submit your corrected tax return

Once you’ve made the changes, submit the corrected return as soon as possible. If you receive the rejection notice before April 15, you have until then to submit the corrected version.

If you initially filed your return on time but the IRS rejected it, don’t worry. They will not count it as late if you fix it and send it within five days of getting the notice.

4. Paper file duplicated return

When someone uses your SSN to file a tax return, it could mean someone is stealing your identity or committing fraud. Scammers might do this, especially if they want to take your refund money.

If this happens, you’ll need to print and mail your return. The IRS will require you to fill out Form 14039 (Identity Theft Affidavit) and include it with your tax return. You’ll also need to send in documents like your W-2 or 1099 forms. The IRS will investigate to figure out which return is real. If you’re owed a refund, don’t worry. The IRS won’t send it out until they finish their investigation.

5. Wait for the acknowledgment

After you send in the corrected return, be sure to monitor for acceptance. If you e-filed, the IRS should send you an acknowledgment within a few hours or days. If you mailed it, you can use the tracking number to see if the IRS received it.

You can also call the IRS or log in to your IRS online account to check your return status. If you’re expecting a refund, use the Where’s My Refund tool on the IRS website to keep track of any updates.

5 Tips to Avoid a Rejected Tax Return

1. Double-check all personal information

Ensure that all personal information, such as your name, social security number, and address, matches your previous year’s tax return and social security card. If your name was changed due to marriage or divorce, request changes to the Social Security Administration.

Remember that your tax return must match the name on the record with the SSA, so it’s essential to update your information accordingly.

2. Be mindful of typos and spelling errors

Review your tax return thoroughly and check for typos and spelling errors that could result in rejection.

3. Use correct figures

Ensure that all numbers, such as your income, expenses, and deductions, are accurate and match your supporting documents, such as W-2s, 1099s, and receipts.

4. Don’t forget to sign

Double-check that you have signed and dated your tax return. If you are filing jointly, make sure your spouse has also signed.

5. E-file your return

E-filing can reduce the likelihood of errors and provide faster processing times than paper filing your return. Most e-filing software has built-in error checking that detects common mistakes. This includes incorrect math calculations or missing social security numbers before you submit your return. Thus, it decreases the chances of the IRS rejecting your tax return.

Additionally, e-filing is a faster and more secure method of submitting your return. Meaning the IRS receives it more quickly and is less likely to lose or delay it.

Consider Hiring a Professional

If you’re unsure how to fix a rejected return or want to prevent one altogether, it may be time to get professional guidance. Tax professionals are knowledgeable in tax laws and regulations. They stay up-to-date with any changes that may affect your tax return. This means they are less likely to make mistakes or overlook important details that could lead to a rejected return.

In addition, tax professionals can help you identify deductions and credits that you may not be aware of, thereby reducing your tax liability and increasing your refund.

If you need assistance preparing your tax return, contact Tax Samaritan at 775-305-1040 for a free 30-minute, no-obligation consultation meeting. With us, you can have the highest level of peace of mind about your taxes.