What Happens if an Amended Tax Return is Rejected?

What Happens if an Amended Tax Return is Rejected?

Figuring out what went wrong is a step you should take immediately. If you file a return and the IRS somehow rejects it, many things could be responsible, and you must know why. If it is addressed and the amended returns are refused, then it may be because you didn't address the problem adequately in the first place. Or, it could be an error on the part of the IRS, in which case, you'll have to appeal.

But it is important to warn that the IRS would never send an email or a text to you. IRS rarely calls either and would only do so after many letters are not replied to. Many scammers would do this, impersonating the IRS by trying to get personal information from you. The IRS would only reach you by mail, and that's how you will get your rejected tax returns.

If you weren't expecting a rejection and got one, you shouldn't panic. You may know what led to the denial in the first place. If that is the case, you need no further investigation. If the amended returns are rejected again, you may need the help of a tax expert.

The first thing to do is reach out to a tax expert to guide you through the investigation. You need to know why your tax returns were rejected. Most times, the rejection comes with an explanation, giving details of the reason. However, it would help if you also reached out to the IRS.

There's always a phone number included in your last tax notice. Call to ask for details. A request for your IRS transcript may also be a good idea, but you may require an expert to help you to sieve the details. While the transcript may not have all the details you need, it is an excellent place to start.

You should know that tax returns are rejected for important reasons. We know this because the IRS accepts tax returns for math errors. So it is more than a case of a simple mathematical error. 

The primary reason why returns get rejected has to do with an error in the documentation, especially when there is a disparity between the name on the returns and that on the database of IRS. If the error is discovered, you can make a correction and e-file the corrected version. But that only applies to errors in social security numbers, any other ID that exists with the IRS, or a misspelling of your name. 

You can correct the error and refill the amended return. Most times, this happens when the returns have procedural errors. But sometimes, it's always due to something deeper, in which case the IRS may outrightly write to deny or reject your amended returns. In that case, the only way out is to appeal the case. You can formally write an appeal to the Office of Appeals to contest the rejection. To do this, you need Form 12203, except when the amount is higher than $25,000.

You can always track your amended tax returns by using the Where's My Amended Return? Feature on the IRS website.

You would need a tax expert for guidance on appealing the rejection. Remember, you must be sure that you have filed your returns correctly and there are no errors before appealing. You need advice because appealing before the IRS would involve stating facts about tax laws and why you believe a mistake was made in rejecting your amended tax returns. If your case is well presented, the IRS may agree, disagree, or partially agree with you. If they agree with you, you have won the appeal. A partial agreement or a disagreement may be further appealed, but that would be at the courts.

Remember, it's best to consult tax experts when dealing with rejected amended tax returns. If you believe the IRS has rejected your amended return in error, you need all the help you can get to get the decision reversed.



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