Filing your tax return is an important obligation that every individual and business has to meet. A tax return rejected can cause many complications and headaches, including penalties and delays in receiving your refund or having a refund adjustment. Therefore, it is essential to understand why tax returns are rejected and steps to avoid tax return rejected . In this article, we will discuss practical ways to avoid getting your tax return rejected and how to correct the mistakes correctly and promptly.
1. Verify that all Personal Information is Accurate
One critical reason for tax return rejection is inaccuracies in personal information. These errors include misspelled names, incorrect Social Security Numbers (SSN) and taxpayer identification numbers (TIN), incorrect birthdays, and more. As such, it is essential to verify that all personal information on the tax return is correct.
2. Confirm That All Income is Accurate
Inaccuracies in reported income are another leading reason for tax return rejection. Ensure that all reported income on Form W-2, Form 1099, or other relevant documents is reported accurately. Particularly, checking that all numbers match the actual earning records, and reporting records for interest, dividends, and other applicable income sources.
3. Keep an Eye on Deadlines
Missing deadlines for annual tax returns or supporting documents submission is one of the leading causes of tax return rejected. Ensure that you submit an accurate tax return within the appropriate deadline, which is usually April 15th each year. Keeping deadlines might also mean validation of information with employers, bankers, brokers, and others to ensure that you may receive important tax-related documents on time.
4. Submit All Required Forms
When filing your tax return, ensure that you have included all the necessary forms, schedules, and worksheets. Depending on your individual situation, you may need to fill additional schedules, including Schedule C (for business income), Schedule D (for capital gains and losses), and Schedule SE (for self-employment taxes). Any missing relevant schedule or form can prevent the return from processing and cause a tax return rejection.
5. Use the Correct Tax Filing Status
The tax return filing status, including Single, Head of Household, Married filing jointly, and others, determines the tax rates and required reporting. Choosing the wrong filing status is another common reason for failed tax returns. Ensure that the filing status you choose accurately represents your marital status and financial obligation.
6. Use the Correct Account and Routing Numbers
If you are entitled to a tax refund, ensure that you have provided the appropriate bank account and routing number details. Any errors
How Do You Know If Your Tax Return Is Rejected?
The usual method for the IRS to address any problem with your tax return is through mail notification. On rare occasions, an IRS representative may communicate with you over the phone or even pay you a visit at home. This, however, only occurs after several written notices have been delivered. For those who electronically filed their tax returns, the IRS will furnish an error code, detailing the reason for the rejection. Should a third-party company file your return electronically, it’s their duty to keep you informed of any identified discrepancies and make the necessary amendments.
How To Fix
If your tax return is rejected, don’t panic. Here are the steps you should take to fix the situation:
- Understand the Reason: The first step is understanding why the IRS rejected it. This will help you identify the specific error and what you need to do to correct it.
- Correct the Error: Once you have identified the error, you must correct it. This may involve filing an amended tax return or providing additional information to the IRS.
- Resubmit Your Tax Return: Once you have corrected all the errors, you must resubmit your tax return to the IRS. You can refile electronically or mail your tax return, depending on the reason for the rejection. If you misspell your name or made mistakes in entering your SSN or EIN, you can correct it electronically. However, if there’s possible fraud or identity theft, or if your dependent was claimed on someone else’s tax return, you’ll need to mail your return.
- Check for Acceptance: Finally, you will need to check to see if the IRS has accepted your tax return. You can do this within a few days of resubmitting your return.
Tips to Avoid a Tax Return Rejected
- Double-check all personal information.
Ensure that all personal information, such as your name, social security number, and address, matches your previous year’s tax return and social security card. If your name was changed due to marriage or divorce, request changes to the Social Security Administration. Remember that your tax return must match the name on the record with the SSA, so it’s essential to update your information accordingly.
- Be mindful of typos and spelling errors.
Review your tax return thoroughly and check for typos and spelling errors that could result in rejection.
- Use correct figures.
Ensure that all numbers, such as your income, expenses, and deductions, are accurate and match your supporting documents, such as W-2s, 1099s, and receipts.
- Don’t forget to sign.
Double-check that you have signed and dated your tax return. If you are filing jointly, make sure your spouse has also signed.
- E-file your return.
E-filing can reduce the likelihood of errors and provide faster processing times than paper filing your return. Most e-filing software has built-in error checking that detects common mistakes. This includes incorrect math calculations or missing social security numbers before you submit your return. Thus, decreasing the chances of the IRS rejecting your tax return. Additionally, e-filing is a faster and more secure method of submitting your return. Meaning the IRS receives it more quickly and is less likely to lose or delay it.
Consider Hiring a Professional
If uncertainty plagues you in making your tax return, then perhaps hiring a tax professional, such as Sudhir Tax, for guidance is worth considering. These experts in tax are well-informed on tax laws and regulations, continually keeping themselves updated on any changes that may impact your tax return. This ensures that the likelihood of mistakes or omissions being made, which could potentially result in rejection, is minimized. Additionally, tax specialists can provide assistance in identifying deductions and credits that you may have previously been unaware of, ultimately reducing your tax burden and potentially increasing your refund.