It is not uncommon for a tax return to be rejected by the Internal Revenue Service (IRS). However, when your return is rejected, it can be a cause for concern. Here is what you need to know about why the IRS rejects some tax returns and what to do if your return is rejected.
Why Was My Return Rejected by the IRS?
There are several potential reasons the IRS may reject your tax return:
- You used the wrong PIN or AGI when e-filing.
- Your EIN did not match.
- You used the wrong SSN.
- Your name or birthday has a typo.
- You are missing forms or schedules.
- Someone else filed a tax return using the same SSN or TIN.
- Someone else claimed the same dependent as you.
How Will I Know the IRS Rejected My Tax Return?
The IRS will try to get a hold of you to provide you with information about your rejected return. Most of the time, they will send a rejected return notice through the mail. If you had an accountant or tax preparer submit your return, they may receive notification of your return’s rejection.
Remember, the IRS will not email, text, or contact you through social media about a rejected return or any other tax matter.
Is My Return Considered Unfiled If the IRS Rejects It?
If the IRS rejects your return, you must file it again after correcting all errors. You will need to do this before the tax deadline. If you submitted your return after the deadline, you will have five days to fix the errors and resubmit it.
Can the IRS Accept a Return and Then Reject It Afterward?
No, once the IRS accepts the return, it will not be rejected after. However, they may request additional information from you at any time. If you have received notice that the IRS accepted your return, you can be confident they have it, though that does not always mean they have processed it yet.
If the IRS Rejects My Return, Will My Taxes Be Audited?
You may be audited for many reasons, but just having a rejected tax return will not trigger an audit. For example, returns are most often rejected because of simple errors that need correction. An auditor from the IRS has not reviewed the return at this point.
Most of the time, when a tax return is rejected, it is an automated process done during e-filing, which means the actual calculations and verification of your information are not complete. That is why it is not likely that this alone will lead to an audit.
Can I e-File My Amended Return If the IRS Rejected My Original Return?
You can file your 1040-X amended return electronically for tax years starting from 2020 if you e-filed your original return. Otherwise, if you submitted an original return on paper or you are amending an older return from before 2020, you will need to submit a paper return.
Does a Rejected Tax Return Mean I am the Victim of Tax Fraud or Identity Theft?
One of the most worrisome reasons for a rejected tax return is that someone has used your information to file a tax return. As noted, this is just one reason the IRS may reject a tax return.
If you suspect for any reason that someone has submitted taxes using your SSN/TIN or that you have been the victim of identity theft, it is critical that you investigate the situation thoroughly to determine what happened.
Most often, the IRS will tell you why the return was rejected. If you receive notification that a return using your information was already submitted, then you must contact the IRS ASAP and also seek help for ID theft.
How Does a Rejected Return Affect Applying for IRS Tax Relief?
If your return is rejected, you will need to submit an amended return. If you are working with the IRS for tax relief, such as an Offer in Compromise or an installment agreement, the IRS cannot process your request until you submit your corrected tax return. That is important to know, as it can impact your timeline for tax debt relief approval.
The IRS provides very specific information to you in your rejected tax return notification. When the IRS is also working with you on tax relief options, they will tell you what tax returns need to be filed or re-filed in order to consider your tax relief request.
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