Can the IRS Reject a Tax Return After It Has Been Accepted?

Can the IRS Reject a Tax Return After It Has Been Accepted?

Table of Contents

Can the IRS Reject a Tax Return After It Has Been Accepted?

Without rejecting a return, the IRS usually corrects math errors. The IRS and the Social Security Administration regularly reject tax returns because a name or number on the return does not match information in their systems.

If you think that the IRS will reject your tax return after it has been accepted, you are not alone. There are many reasons you may experience this error, and there are solutions for each one.

Here are some of the more common problems: Expired taxpayer identification number, Mismatch of prior-year AGI and PIN, Identity theft, and more. If you are unsure why your tax return was rejected, please read our tips on avoiding such a problem.

Expired taxpayer identification number

If you are not a U.S. citizen, your ITIN will differ from your Social Security number. These numbers are only good for tax reporting purposes and cannot be used for employment authorization or earning Social Security benefits. To resolve the situation, you should apply for a new one.

If you have changed your name since the last time you filed your taxes, update your social security number (SSA) and IRS accounts. For this reason, you should notify the SSA immediately. While technical errors are rare, electronic mail transmission issues can occur. Hence, it is essential to check the information quickly.

The renewal process for expired ITINs is the same as for the new one. You need to provide the necessary documents with the expired ITIN. Moreover, an expired ITIN may delay your refund and prevent you from claiming certain tax credits. The Child Tax Credit, for instance, requires you to renew your ITIN before the due date if you want to claim the child tax credit. You can check if you have to renew your ITIN before filing your taxes.

In cases where you have received an error code for the first time, it is imperative to check your documents. You can go to the part of your return that triggered the error code and review it carefully. Make sure all of your information matches up correctly with the information on the paper documents. If you have checked everything carefully and found that the information on the return is correct, it should not be rejected.

Mismatch of prior year AGI

If you’re unable to e-file your tax return because of a mismatch in AGI from a previous year, don’t panic. You can use the previous year’s AGI instead of the $1 that the IRS says you need to enter. The IRS does recalculate AGI when reviewing returns. The correct way to determine your AGI for a previous year is to use the AGI that you reported on your 2019 return.

Using the Non-Filers tool is helpful if you want to register for an advance Child Tax Credit payment or third Economic Impact Payment. If you do not know how to calculate your AGI, you can use your prior year’s income and enter that amount. You can also use this tool to verify the accuracy of your tax return and order a transcript if you’re unsure if your information is correct.

You can use an online service to check if your prior year’s AGI is correct. This will help you determine if your return is accurate and whether or not you’ve made any adjustments in the past year. You can also check your e-filed return using the Cash App Taxes service. If you have mailed your return, print and sign it so the IRS can verify your identity.

Suppose your employer rejected your return due to a mismatch between your previous and current year’s AGI. In that case, you may want to consider filing a state return only. Then resubmit your federal return after making corrections to your state return. The most common mistake is entering AGI for the current year instead of the previous year. This means that your AGI should match the previous year’s 1040. In addition, you must enter a separate AGI entry for each spouse if you are filing a joint return.

Using an IP PIN to e-file your federal tax return can help prevent identity verification e-file rejection. You can use your IP PIN to verify that you are the primary taxpayer. 

Mismatch of prior year PIN

If the taxpayer and the preparer chose the same five-digit PIN for a previous year, but there is a mismatch, the IRS will not accept the tax return. The PIN must match the IRS Master File. This issue is more common if the PINs are the same. In this situation, the tax preparer should not accept the tax return but should reject it instead.

You must have the prior year’s tax return and PIN to avoid the mismatch. If you didn’t make these calculations yourself, you need to have a prior-year tax return. You should also have a copy of the prior year’s tax return and a valid IP PIN for this year. This information can be found on lines 37 and 21 of Form 1040 and line 4 of Form 1040-EZ. 

The IRS receives personal information from the Social Security Administration (SSA) and other government agencies. Mismatch errors occur when the information you provided is incorrect or does not match the data in their database. For example, you might have accidentally entered your PIN or your prior year’s adjusted gross income into the wrong field. Additionally, same information can occur if you have more than one child. This error bounces back your tax return because of a duplicate claim.

Suppose the IRS rejects a tax return because of a mismatch between the PIN and the previous year’s AGI. In that case, it’s essential to contact your ERO as soon as possible. Most EROs will ask you to provide a copy of your prior year’s PIN before accepting your tax return. In addition, make sure that the ERO receives your signed signature authorization before transmitting your return.

Identity theft

If you have received your tax refund and want to protect yourself from identity theft, you must file your taxes as early as possible. The IRS is aware of the growing threat of tax identity theft and is actively working to prevent this crime. The most common sign of tax identity theft is an inaccurate or fraudulent tax return. IRS says one return per Social Security number is acceptable. 

Those who are victims of tax-related identity theft must file a report with the IRS using Form 14039. This form should be attached to your tax return and submitted by mail. This form will flag your account for suspicious activity, and an IRS specialist will investigate. Another way to prevent identity theft is to use an IP PIN. This six-digit PIN is used to verify your identity when filing your tax return.

Suppose you have filed a tax return and discovered that you had been a victim of identity theft. In that case, the IRS may not notify you until after the tax season ends. However, discover suspicious activity, such as a duplicate social security number, a fraudulent tax return, or a tax transcript. You should close any compromised accounts, including credit cards, debit cards, checking, and savings accounts. If possible, you need to create new accounts with new account numbers to avoid further problems.

You will only receive one tax refund per Social Security number in most cases. If you file your return early, you’ll beat the criminals to the punch. However, it can take months to fix issues caused by fraudulent tax returns. Therefore, you should follow the advice of your tax professional and make sure your return is completed as soon as possible. Even if you do not have the correct documents, a tax expert can help you file your return as early as possible.

The IRS sends out a mail notification that your tax return has been flagged for identity theft. These mails are typically received after a quarter of the return has been reviewed. However, it may take several days for the check to arrive in the mail. In addition, the entire refund process can take several weeks unless you’ve requested a refund via check. You should allow a week for the mail to arrive during this time.