Posted by Pat Raskob

Simple Ways to Correct an E-File Rejection

Simple Ways to Correct an E-File Rejection

One of the most popular ways to file taxes is via e-filing due to the convenience alongside the increased turnaround time filers get. When you file online, the tendency and number of errors significantly reduce as well. This is because the tax software directs and assists customers through the filing process. Also, Uncle Sam conducts an initial review of every return before acceptance. The idea behind the initial assessment is to check for errors and provide a way to fix them. 

Even though the last message a taxpayer wants is rejection, the procedure for amendment is pretty straightforward. It is even possible to resubmit in a couple of minutes if the error is minor. 

Rejected returns must be amended between 10 calendars (not working) days. For filers that got a notice close to or after the tax deadline, April 15, there is a grace till April 20 to correct any rejection and resubmit it. 


Procedure to Correct Rejected e-file Tax Return 

The first step is to determine the error as there are various kinds of e-file error that might warrant the rejection of an e-file. All errors come with a transmitted code with which one can determine the nature of the error.

 

Standard Error Codes received When Submitting 1040 Taxes 

Errors 0679, 0680 or IND-031, IND-032

The implication of any of these errors is that the system cannot identify either or both taxpayers. You will have to submit your e-file pin or the Adjusted Gross Income from previous years. One can request such a pin from Uncle Sam, enter the pin in the software and resubmit the tax return for further review. 

Error 0504

This is a pretty standard error for people claiming a dependent. A return will be rejected if the dependent's last name and social security number do not correspond with what the Social Security Administration has on file. All you have to do is cross check the spelling on the card and resubmit for further processing

Error 0502, FW2-502 or FW2G-502

Any of these error code points to the fact that there is an issue corresponding data with Uncle Sam and what is available on your W2. This is pretty common if there is an error on the EIN or a typo. Also, one needs to consider the Employer name's spelling, the Employer's Identification Number and write out all abbreviations in full. 

When you fix the EIN and the Employer's name, this error should clear away, and you can resubmit your return. 

Error 0522

You will likely have this error if your date of birth is incorrect. If the birth date does not match the social security number, such an error code will pop up. Check your date of birth and review your date of birth that Uncle Sam has on file, resolve such if there is a mistake.

 

Error 0507 or R0000-507-01

You will likely receive either of these errors if you are claiming a dependent. The implication is that someone already claimed the social security number of the dependent. 

You have to check if you have the social security number correct, or you might have typed the number twice. You can also contact Uncle Sam to know who claimed your dependent. You could fix the error if it were a mistake. If the dependent was claimed already, remove such person and resubmit. 


Conclusion 

Filing by using the electronic method might come with a series of errors, but the good news is that the software will give you a rejection report and shed light on what you will fix before you resubmit. After correcting the errors, submit again.

For any rejection due to data with Uncle Sam, the option might be to file a paper return till you might be able to fix such mistake triggering the error. 

As long as you understand the error code, the next step is to fix the issue and resubmit. Cases of returns not being fixable is pretty rare, but all you have to do is mail the return in such cases.


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Pat Raskob
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