Table of Contents

What if My Tax Return Gets Rejected? A Seasoned Expert’s Guide

So, your tax return got rejected. Deep breaths. It’s more common than you think, and almost always fixable. A rejection simply means the IRS or your state’s tax agency found an error that prevented them from processing your return. Unlike an audit, which involves a more thorough investigation, a rejection is usually a surface-level issue. The good news is, you can almost always resubmit a corrected return. This article breaks down what to do, common reasons for rejection, and how to avoid this frustrating situation in the future.

Understanding the Difference: Rejection vs. Audit

It’s crucial to understand the difference between a tax return being rejected and being audited. A rejection is essentially a technical error. Think of it like a typo that a spell checker catches. The system recognizes the error and kicks the return back before it even enters the processing queue. An audit, on the other hand, is a more in-depth examination of your tax records to verify the accuracy of the information you reported. An audit is a much more serious and time-consuming process.

Immediate Steps to Take After a Rejection

Identify the Error: The first thing you need to do is carefully examine the rejection notification you received. It will specifically state the reason for the rejection. This is your roadmap for fixing the problem.
Correct the Error: Using the rejection notification as your guide, carefully review your tax return and make the necessary corrections.
Resubmit Your Return: Once you’ve corrected the error, you’ll need to resubmit your tax return. If you filed electronically, you can usually do this through the same software or service. If you filed a paper return, you’ll need to mail a corrected return. Make sure it is the most updated information.
Act Quickly: Time is of the essence, especially if you are approaching a tax deadline. Filing promptly minimizes potential penalties and interest.
Keep Documentation: Maintain copies of your original tax return, the rejection notification, and the corrected return. This documentation can be invaluable if any further issues arise.

Common Reasons for Tax Return Rejection

Knowing the usual suspects can help you avoid rejection in the first place:

Incorrect Social Security Number (SSN): This is one of the most common errors. Double-check the SSNs for you, your spouse (if filing jointly), and any dependents. A simple typo can cause a rejection.
Name Mismatch: The name on your tax return must exactly match the name on file with the Social Security Administration (SSA). Even a slight variation (e.g., using “Mike” instead of “Michael”) can trigger a rejection.
Duplicate Filing: Submitting the same tax return twice, even with minor corrections, can result in a rejection. The system flags the duplicate as a potential attempt at fraud.
Date of Birth Errors: Ensure the dates of birth for yourself, your spouse (if applicable), and your dependents are accurate.
Incorrect Adjusted Gross Income (AGI): If you are filing electronically and using a prior year’s AGI to verify your identity, make sure the AGI matches what the IRS has on file. This is a frequent stumbling block for first-time filers.
Bank Account Information Errors: When requesting a direct deposit refund, double-check your bank routing and account numbers. Even a single digit error can cause the refund to be rejected by your bank, or your tax return to be rejected by the IRS.
Form Errors: Using the wrong tax form or filling out a form incorrectly can lead to rejection. Ensure you are using the correct form for your filing situation and that all required fields are completed accurately.
Signature Issues: For paper returns, a missing or invalid signature can cause rejection. Ensure you (and your spouse, if filing jointly) sign the return. For e-filed returns, authentication issues can occur which have to be corrected and filed again.
Dependent Claim Issues: If you are claiming a dependent, make sure they haven’t already been claimed on another tax return. Also, ensure you meet all the eligibility requirements for claiming the dependent.
Exceeding Filing Limits: Most tax software and online filing services have limits on the number of times a return can be electronically filed. If you exceed the filing limit, your return might be rejected.

Preventing Future Rejections

Prevention is always better than cure. Here are some tips to minimize the risk of tax return rejection:

Double-Check Everything: Before submitting your return, thoroughly review all information for accuracy. Pay close attention to SSNs, names, dates of birth, and financial figures.
Use Reliable Tax Software: Reputable tax software programs often have built-in error checks to help you identify potential problems before you file.
File Electronically: E-filing generally reduces the risk of errors compared to paper filing. The software guides you through the process and performs automatic checks for common mistakes.
Consult a Tax Professional: If you are unsure about any aspect of your tax return, consider seeking help from a qualified tax professional. They can provide personalized guidance and ensure your return is accurate.
Keep Accurate Records: Maintaining organized tax records throughout the year makes it easier to prepare an accurate tax return and reduces the likelihood of errors.

Frequently Asked Questions (FAQs)

1. What happens if I miss the tax deadline because my return was rejected?

You’ll generally avoid penalties if you correct the errors and resubmit your return as soon as possible. However, penalties and interest may accrue from the original deadline until the corrected return is accepted. Aim to resubmit immediately after receiving the rejection notice.

2. Does a rejected tax return mean I’m going to be audited?

No, a rejection doesn’t automatically trigger an audit. A rejection is a technical issue, while an audit is a more in-depth investigation. Correct the errors and resubmit your return, and you should be fine.

3. Can I amend a rejected tax return?

No, you cannot amend a tax return that has been rejected. An amendment is used to correct errors on a return that has already been accepted. Since a rejected return has not been accepted, you need to correct the initial rejection and resubmit.

4. What if I don’t know why my return was rejected?

The rejection notification should specify the reason. If it’s unclear or you need further assistance, contact the IRS or the tax software provider for clarification.

5. Can I still get my refund if my return was rejected?

Yes, you will receive your refund once you correct the errors and the IRS accepts your resubmitted return. The processing of your refund will be delayed until your tax return is fully accepted.

6. How long does it take to process a corrected tax return?

Processing times vary, but it generally takes as long as an original filing. Check the IRS website for current processing times. E-filed returns are usually processed faster than paper returns.

7. What if my bank account information changes after my return is rejected?

If your bank information changed before resubmitting, you’ll need to update the bank information on your corrected return. If your refund was rejected by the bank, the IRS will issue a paper check to your address of record.

8. What if I filed a paper return and it was rejected?

You will need to correct the errors and mail a new, corrected paper return to the appropriate IRS address. Make sure to include any supporting documentation as needed.

9. If I had to pay more taxes because of a mistake that caused the rejection, will I be penalized?

Potentially. If the mistake was unintentional and you correct the error promptly, you might avoid penalties. However, interest will likely accrue from the original due date until you pay the full amount owed.

10. If my tax return is rejected, does that affect my credit score?

No, a rejected tax return does not directly affect your credit score. However, if you owe taxes and fail to pay them on time after your return is accepted, it can lead to penalties and interest that could ultimately affect your credit.

11. What is the best way to avoid common errors that lead to rejection?

The best preventative measure is to be extremely careful when entering your personal and financial information. Use reliable tax software, double-check all numbers and names, and consider seeking help from a tax professional if you’re unsure.

12. Can a tax preparer guarantee that my return won’t be rejected?

No reputable tax preparer can guarantee that a return won’t be rejected. They can strive to prepare an accurate return, but ultimately, the IRS’s systems determine whether a return is accepted. A qualified preparer can, however, minimize the risk by thoroughly reviewing your information.