We get a lot of questions each year on how to train on rejected returns that are relevant to our site. The following outlines a process that can be used:
- Login to your site with a username that has the ability to run reports
- Select Reports
- Expand Transmission Reports
- Expand Federal Reports
- Select IRS Acknowledgements (Just to make sure all have been read)
- Select Back to return to the Office reporting menu and expand the same reports options again
- Select Old IRS Acknowledgements
- Select the EFIN, even though there is only 1
- Select your date range
- Recommend 1/1/2019 through current date
- Click Continue
- Sort by Status and/or Reject code to group the reject together
- Export to Excel (we only display and export the last 4 digits of the SSN)
You can now sort your rejects by the type of rejects to determine what you need to focus training on. Follow the same steps above for state rejects
We are working on a reject chart of the top 20 or 30 rejects across the VITA/TCE returns to also aid in training. Below is an example of what we are creating:
| IRS Reject Code | IRS Text | What does this mean | Suggestions for resolution |
| R0000-500-01 | ‘PrimarySSN’ and ‘PrimaryNameControlTxt’ in the Return Header must match the e-File database. | The primary taxpayer SSN or name do not match IRS records. | Review the SSN and name entered on the return to ensure it matches the information on the taxpayer’s social security card. If there was a typographical error, update the information and follow your sites procedures for submitting rejected returns. If the information appears to be entered correctly, the taxpayer needs to contact the social security administration at 1-800-772-1213 to see if there is an error in their records. |
| R0000-504-02 | Each ‘DependentSSN’ and the corresponding ‘DependentNameControlTxt’ that has a value in ‘DependentDetail’ in the return must match the SSN and Name Control in the e-File database. | The dependent SSN or name do not match IRS records. | Review the SSN and name entered on the return to ensure it matches the information on the dependents’s social security card. If there was a typographical error, update the information and follow your sites procedures for submitting rejected returns. If the information appears to be entered correctly, the taxpayer needs to contact the social security administration at 1-800-772-1213 to see if there is an error in their records. TIP: The last 4 digits of the SSN of the rejected dependent can be viewed on the IRS Acknowledgement Report, the Rejected Clients list, and the Client List |
| R0000-503-02 | Spouse SSN and Spouse Name Control in the return must match the e-File database. | The spouse taxpayer SSN or name do not match IRS records. | Review the SSN and name entered on the return to ensure it matches the information on the spouse’s social security card. If there was a typographical error, update the information and follow your sites procedures for submitting rejected returns. If the information appears to be entered correctly, the taxpayer needs to contact the social security administration at 1-800-772-1213 to see if there is an error in their records. |
| FW2-502 | Form W-2, Line B ‘EmployerEIN’ must match data in the eFile database. | The employer federal identification number (EIN) does not match the IRS Records | Review the payer EIN and company name entered on the W-2. Update as necessary and resubmit the return. If there was a typographical error, update the information and follow your sites procedures for submitting rejected returns. If the information appears to be entered correctly, the taxpayer needs to contact the issuer of the W-2 for assistance. TIP: The EIN of the rejected W-2 can be viewed on the IRS Acknowledgement Report, the Rejected Clients list, and the Client List |
| IND-046-01 | Form 8862 must be present in the return. The e-File database indicates the taxpayer must file Form 8862 to claim Earned Income Credit after disallowance. | The Form 8862 needs to be included with the return if the taxpayer is wanting to claim the Earned Income Tax Credit. The IRS indicates it has been disallowed in a prior year. | Add Form 8862 to the tax return and select BEGIN on the Information to Claim Certain Rerfundable Credits after Disallowance line. Select BEGIN on the Claim EIC After Disallowance line. Complete the appropriate information and follow your sites procedures for submitting rejected returns |
| F1099R-502-02 | Form 1099-R, ‘PayerEIN’ must match data in the e-File database. | The payer’s federal identificaiton number (EIN) does not match the IRS Recods | Review the payer EIN entered on the1099-R. Update as necessary and resubmit the return. If there was a typographical error, update the information and follow your sites procedures for submitting rejected returns. If the information appears to be entered correctly, the taxpayer needs to contact the issuer of the 1099-R for assistance. TIP: The EIN of the rejected 1099R can be viewed on the IRS Acknowledgement Report, the Rejected Clients list, and the Client List |
| IND-516-01 | If Form 1040, ‘PrimaryClaimAsDependentInd’ is not checked, then the Primary SSN must not be the same as a Dependent SSN on another return. | The Primary SSN has already been claimed as a dependent on someone else’s return | This reject typically occurs when the taxpayer is trying to claim an exemption for themselves after someone else, usually a parent, has already claimed them as a dependent. Verify the SSN was entered correctly. If the taxpayer knows who claimed them on their return, mark the box “Claimed on someone else’s return” and follow your sites procedures for submitting rejected returns. Otherwise, you will need to mark the return type as Paper and have the taxpayer paper file the return. |
| IND-181-01 | The Primary Taxpayer did not enter a valid Identity Protection Personal Identification Number (IP PIN). Please visit www.irs.gov/getanippin for further information and resubmit your return with the correct number. | The taxpayer’s IP PIN was not entered in the tax return and the IRS is expecting one to be entered. | The IRS mails the IP PIN to the taxpayer. They can visit www.irs.gov/getanippin for further information. If the taxpayer has the IP PIN, navigate to Miscelleneous Forms and select BEGIN on the IRS Idenitification PIN line. Enter the PIN and follow your sites procedures for submitting rejected returns. |
| R0000-507-01 | ‘DependentSSN’ in ‘DependentDetail’ on the return was used as a Dependent SSN on a previously filed tax return for the same tax period. | The dependent was already listed as a dependent on another tax return that was filed. | Verify the SSN for the dependent was entered correctly. If the taxpayer wants to dispute that another person claimed the dependent, they will need to paper file the return and include correspondence stating the issue and any documentation showing they are eligible to claim the dependent. If they want to electronically file the return, the dependent in question will need to be removed. TIP: The last 4 digits of the SSN of the rejected dependent can be viewed on the IRS Acknowledgement Report, the Rejected Clients list, and the Client List |
| IND-420 | At least one of the following must have a non-zero value in the return: ‘TotalIncomeAmt’ or ‘AdjustedGrossIncomeAmt’ or ‘TaxAmt’ or ‘TotalTaxBeforeCrAndOthTaxesAmt’ or ‘TotalCreditsAmt’ or ‘AggregateTaxAmt’ or ‘TotalPaymentsAmt’. | The return was filed with no Federal Filing Requirement | If no state return needs to be filed, mark the return as Paper to remove it from your rejected list. If a state return needs to be filed, be sure to mark “Send State Only” to prevent the federal return from being electronically filed and rejected. |
| IND-517-01 | A Dependent SSN in the return must not be the same as the Primary or Spouse SSN on another return where ‘PrimaryClaimAsDependentInd’ or ‘SpouseClaimAsDependentInd’ is not checked. | A dependent on the return has already filed a return where they were listed as the primary or spouse and did not indicate someone else could claim them. | Verify the SSN for the dependent that was rejected. If the dependent filed their own return there are two options (1) Remove the rejected dependent from the return or (2) the rejected dependent can amend their return to indicate they can be claimed as a dependent. TIP: The last 4 digits of the SSN of the rejected dependent can be viewed on the IRS Acknowledgement Report, the Rejected Clients list, and the Client List |