Key Takeaways
Most rejected tax returns are caused by simple errors like mismatched Social Security numbers, incorrect prior-year AGI, or duplicate filings, and they’re usually easy to fix.
A rejected return is not the same as an audit or IRS trouble. It simply means your return wasn’t accepted yet and needs to be corrected and resubmitted.
Fixing and resubmitting quickly is key to avoiding delays in processing and receiving your refund.
Common Reasons The IRS Rejects Tax Returns
E-filed tax returns are typically rejected due to a typo or clerical error. Once corrected, your return can be refiled at no additional cost. Here are some other common reasons why your return may be rejected.
Incorrect Social Security Number (SSN)
A simple typo or transposition of numbers in your SSN can result in a rejected return.
Fix: Verify all Social Security numbers against official documents (Social Security cards) and correct any typos before submitting them.
Name or Birthdate Doesn’t Match IRS Records
Your name must match what’s on file with the Social Security Administration. Using nicknames or incorrect birthdates can trigger a rejection.
Fix: Use your legal name exactly as it appears on your Social Security card and verify your date of birth.
Duplicate Filing
The IRS will reject your return if it has already received a return under your name and SSN.
Fix: Check to see if you (or your tax preparer) already submitted your return. If you didn’t file, this could indicate identity theft. Review your IRS account and consider filing an Identity Theft Affidavit (Form 14039).
Dependent Claimed on Another Return
If you are separated or divorced, your return will be rejected if your ex (or someone else) files before you and claims your dependent on their return.
Fix: Confirm that no one else has claimed the same dependent; if there’s a dispute, you may need to file a paper return and provide supporting documentation.
Incorrect AGI From Prior Year
When using e-file, you must provide either your Identity Protection Personal Identification Number (IP PIN) or the adjusted gross income (AGI) from last year’s tax return. If either of these is incorrect, the IRS will reject your return.
Fix: Enter your exact prior-year adjusted gross income from your previous tax return, or use an IRS transcript if you don’t have a copy.
Other Reasons Your Return May Be Rejected
In addition to the most common errors, there are other, less obvious reasons why the IRS may reject your tax return.
EIN Doesn’t Match
If your Employer Identification Number (EIN) doesn’t match what the IRS has on its records, your return will be rejected.
Fix: Double-check the Employer Identification Number on your W-2 or 1099 forms and contact the issuer if the information appears incorrect.
Identity Theft or Fraud Flags
If the IRS detects suspicious activity or believes your personal information may have been compromised, your return could be rejected or flagged for further review.
Fix: Follow IRS instructions to verify your identity (such as using ID Verify) and consider filing an Identity Theft Affidavit (Form 14039) if fraud is suspected.
Missing Tax Forms
If you fail to complete all required forms, your return will be rejected.
Fix: Review your return to ensure all required forms and schedules are included before resubmitting.
Rejected vs. Accepted vs. Audited: What’s The Difference?
If you’re dealing with a rejected tax return, it’s important to understand how that differs from a return that’s been accepted or audited. These terms mean very different things, and knowing the difference can help you avoid unnecessary stress.
Rejected Tax Return
A rejected return means the IRS has not accepted your tax filing at all due to an error or a mismatch in the information provided. This typically happens during the e-file process when something doesn’t align with IRS records.
What it means for you: You’ll need to fix the issue and resubmit your return. The good news is that rejections are usually caused by simple errors and can often be corrected quickly.
Accepted Return
An accepted return means the IRS has received your tax return, and it passed initial checks. However, this doesn’t mean your return has been fully processed or approved.
What it means for you: Your return is being processed by the IRS. You may still receive a notice later, if the IRS finds issues, but most accepted returns move forward without problems.
Audited Tax Return
An audited return means the IRS is taking a closer look at your tax filing to verify that your income, deductions, and credits were reported correctly. Audits happen after a return has already been accepted and processed.
What it means for you: You may be asked to provide documentation or clarification. Although audits may feel intimidating, many are routine and resolved by submitting the requested information.
Tax Tip
A rejected return is the least serious of the three. It simply means your return needs to be corrected before it can be filed. An accepted return is in progress, while an audit involves a deeper review after filing.
Common IRS Rejection Codes & What They Mean
Common IRS e-file rejection codes typically stem from mismatches in taxpayer identification, AGI, or personal information. Here are some of the most common rejection codes and what they mean.
- R0000-500-01/503-02: The primary taxpayer’s (or spouse’s) SSN or last name does not match IRS records.
- R0000-504-02: The dependent’s name or SSN does not match IRS records.
- FW2-502: EIN does not match IRS records.
- IND-031-04/032-04: The prior year AGI or PIN does not match IRS records.
- IND-180-01: The primary’s IP PIN does not match IRS records.
- IND-515-01/512-06: The primary or spouse’s SSN has already been used on a previously accepted tax return for the current tax year.
- IND-516-01: The primary’s SSN has already been claimed as a dependent on another return.
- IND-517-01: A dependent Social Security Number (SSN) on your tax return is the Primary or Secondary SSN on another return.
- F2441-526: The childcare provider’s SSN/EIN is missing or does not match IRS records.
- R0000-507-01: The dependent was already listed as a dependent on another return.
What to Do If Your Tax Return Was Rejected
If your tax return is rejected, follow these steps to resolve the situation.
- Identify The Rejection Code: Your tax software should describe what the error code means. You can also use the IRS Free File Fillable Forms Error search tool to learn more about the specifics of your rejection code.
- Fix The Error: Follow the instructions provided by your tax software to correct the error indicated, or follow the steps outlined in the IRS error search tool.
- Resubmit Your Return: In most cases, you should be able to resubmit your return using e-file with your tax software. For some errors, such as identity theft or potential tax fraud, you may need to submit a paper tax return.
- Seek Professional Tax Help: If your tax return is repeatedly rejected, or you suspect identity theft or tax fraud, you may want to reach out to a tax professional. A tax professional can assist with complicated returns or situations (like a dependent dispute) that may feel overwhelming on your own.
Final Thoughts
Having your tax return rejected can be frustrating, but in most cases, it’s a minor setback and not a major problem. The IRS rejects returns to prevent errors from entering their system, and the issue is often something small that can be corrected in just a few steps. By understanding the most common reasons for rejection and how to fix them, you can quickly get your return back on track. And if the issue is more complex, seeking professional guidance can help ensure everything is handled correctly and give you peace of mind.