IRS Rejected Your Tax Return? Common Causes and How to Fix It
A rejected tax return is usually caused by a simple data entry error. Learn what triggers an IRS rejection and the practical steps to correct it.
When the IRS rejects an e-filed tax return, it rarely means you are being audited or that you owe additional money. In almost all cases, a rejection is simply an automated response indicating that the return did not match the IRS database. Fortunately, most rejections are caused by easily fixable data entry errors.
Common Reasons for a Rejection
The IRS uses an automated matching system to verify basic identity and prior-year data before it accepts a return into its processing queue. If the information provided does not perfectly match what the agency already has on file, the system bounces the return back. The most frequent triggers include:
- Incorrect AGI: Your prior-year Adjusted Gross Income (AGI) or PIN does not match the IRS records. This is the most common reason for rejection.
- SSN or Name Mismatches: A misspelled name or a transposed digit in a Social Security Number for the taxpayer, a spouse, or a dependent.
- Already Filed: The IRS has already received and accepted a return with the same primary SSN.
- Dependent Claims: A listed dependent has already been claimed on another return.
How to Read the Rejection Notice
When a return is rejected, your tax software will provide an error code or a brief explanation of why the e-file was bounced. This code is the key to fixing the problem. It will typically point directly to the specific field that needs to be corrected, such as the prior-year AGI or a dependent’s SSN.
Practical Steps to Resolve the Issue
Once you have identified the cause of the rejection from the error code, you can move forward.
- Verify your prior-year AGI: Pull out your previous year’s accepted tax return. Ensure the AGI number you entered for identity verification matches exactly. If you did not file last year, enter zero.
- Check personal information: Double-check all SSNs and legal names against the actual Social Security cards to ensure there are no typos.
- Correct and resubmit: Update the incorrect information in your tax software and resubmit the e-filed return.
If the software indicates that someone else has already claimed a dependent or filed a return using your SSN, you will not be able to e-file your correct return. In these cases of suspected identity theft or dependent disputes, you must print the return, sign it, and mail it directly to the IRS.