The IRS typically rejects e-filed tax returns due to data mismatches, such as an incorrect Social Security Number (SSN), name, or date of birth not matching their records, or claiming a dependent already claimed by someone else, but common issues also include filing errors like duplicate returns, incorrect bank details, or missing required forms like Form 8962 for health insurance subsidies. Fixing these usually involves correcting the error and resubmitting; however, some fraud-related issues might require mailing the return.
Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.
If your return was rejected indicating you or your spouse have already filed or you have further questions, call us at 800-829-1040 (see Telephone assistance for hours of operation). For general information about e-file, refer to IRS Free File: Do your taxes for free.
Very odd-usually the IRS will force you to print and mail after 5 rejected e-file attempts.
One-time forgiveness, officially known as First-Time Penalty Abatement (FTA), is an IRS program that allows qualified taxpayers to have certain penalties removed from their tax accounts.
Processing your refund usually takes: Up to 21 days for an e-filed return. 6 weeks or more for returns sent by mail. Longer if your return needs corrections or extra review.
Bottom line. If your tax return is rejected, don't panic. While it could delay your refund, the common reasons for rejection are often easy to fix. If your return was rejected because a return was already filed with your Social Security number, that could mean you were a victim of identity theft.
Here are 12 IRS audit triggers to be aware of:
Signs That The IRS Might Be Investigating You
There are many reasons why the IRS may be holding your refund. You have unfiled or missing tax returns for prior tax years. The check was held or returned due to a problem with the name or address. You elected to apply the refund toward your estimated tax liability for next year.
If your return is rejected, you have until the later of either the filing deadline OR five days after the last rejection notice to resubmit your return and have it accepted before the IRS will assess late fees (if rejected on 4/15, this would give you until 4/20).
Briefly, acceptance means consent, agreement, or to accede. Rejection means to dismiss, repudiate, or refuse. While the degrees of difference between both are substantial, they are often disguised in the so-called “gray” areas of political discourse.
Avoid These Common Tax Mistakes
Some common culprits that could cause a rejection are mismatched names, SSNs, employer EINs, electronic signature numbers, or an expired TIN. File early. Another action to take is to file your return early. This gives identity theft criminals less time to file a fraudulent return using your information.
You can go somewhere else since it's rejected as long as you didn't receive an advance.
They'll look for math errors, check if you owe back taxes or unpaid child support, and more. If they need to make any corrections, they may offset (reduce) or increase your refund.
You can re-submit your e-filed return as many times as necessary until the filing deadline in October. However, we recommend that after three unsuccessful attempts (with the same e-file error), you print, sign, and mail your return. Some e-file issues cannot be resolved except by the IRS.