Possible Rejection Reasons When E-filing Taxes
When a tax return is e-filed and is rejected, it is often due to taxpayer information that has been entered incorrectly and does not match what the Internal Revenue Service (IRS) is expecting. If this happens to a user of E-file.com we do our best to email that user as soon as possible.
When available, the email will include the reason for rejection that has been provided by the IRS. Whenever a user's return is rejected they are able to correct the issue and re-transmit their tax return on E-file.com, completely free of charge. Below you will find a list of common rejection codes for electronically filed tax returns:
Common Causes & Rejection Codes
There are numerous reasons why a return may be rejected. These are some of the most frequent errors that may occur when electronically transmitting the Form 1040. In most cases, once resolved, the taxpayer's return can be re-filed. In select cases, the return may need to be printed and mailed to the IRS.
Mismatched Personal Information
Personal information provided by the taxpayer does not match the information on file with the Social Security Administration. This is often the most frequent cause for a return being rejected. Information provided by the taxpayer or their spouse such as the SSN, name or birth date is either incorrect or does not match what the IRS is expecting.
Code for bad primary taxpayer SSN: R0000-500-01; bad spouse SSN: R0000-503-02 and/or R0000-504-02
Code for birth date mismatch: F1040/F1040A/F1040EZ-524-01
Previously Accepted Return
Someone has already e-filed a return with the same taxpayer number (Social Security Number or Tax Identification Number). This most often occurs because a taxpayer or spouse has already e-filed a return for the current year. This can also occur when the taxpayer or spouse has been the victim of identity theft.
Rejection codes: R0000-902-01 and/or IND-510
Dependent Claimed On Another Return
A taxpayer claims a dependent that is also being claimed on another taxpayers return. This can occur when there is confusion, or a lack of communication by custodial and non-custodial parents or guardians, regarding who claims the dependent.
Rejection codes: R0000-507-01 and/or SEIC-F1040-521-02
Dependent Files Own Return
Taxpayer previously filed a tax return for the year either themselves and taking the personal exemption or by other taxpayers who claimed them as a dependent.
Rejection code: F1040-512
Electronic Signature Mismatch
Electronically transmitted tax returns require either the taxpayers Adjust Gross Income from last year or Identity Protection Personal Identification Number (IP PIN) to electronically sign the return. Either the taxpayer's AGI or PIN must match the IRS database. This rejection occurs when an incorrect AGI or PIN is entered.
Codes for bad PIN: IND-180-01 and/or IND-183-01
Codes for bad AGI: IND-031-03 and/or IND-032-03
EIN Does Not Match
A return will be rejected if the Employer Identification Number (EIN) on the tax return does not match what the IRS has in its database.
Rejection codes: FW2-502, FW2G-502 and/or F1099R-502-02
These are just some of the most frequently encountered codes/rejection causes. There are also a number of less frequent codes such as an IND-689-01, for when a return is not filed during the year it was completed and then transmitted in a subsequent year. However, for the most part, these are the codes which most taxpayers will ever need to concern themselves with.
Q&A: My employer doesn't have an Employer Identification Number (EIN), do I report these wages?
Companies based in the United States who issue W-2s to employees must have a valid EIN. However, foreign entities are not bound by this requirement. If you received compensation from a foreign entity last year, you must report it to the IRS. These wages can be reported as foreign employer compensation without an EIN.