Top IRS Individual Reject Codes

1. R0000-504-01: Each ‘Dependent SSN’ and the corresponding ‘DependentNameControl’ that has a value on Line 6c(2) of the return, must match the SSN and Name Control in the e-File database
   -          The IRS checks the Social Security number against the name control which is usually the first 4 letters of the last name. Verify the dependent’s last name and Social Security number against what they have on the Social Security card. If the card matches exactly, have the taxpayer contact the Social Security Administration at: 1-800-772-1213 to correct the Social Security Administration’s records.  It takes Approximately 2 weeks to update in the efile database.
2. R0000-507-01: ‘Dependent SSN’ on Line 6c(2) of the return was used as a Dependent SSN in a previously filed tax return for the same tax period.
   -          Someone has already filed a return listing this person as a dependent. You cannot electronically file the return with this dependent listed. If the taxpayer believes this reject is in error, you can leave the rejected dependent on the return and mail a paper return.
3. Seic-F1040-501-01: Each ‘QualifyingChildNameControl’ that has a value on Schedule EIC(Form 1040A or 1040), Line 1, and ‘QualifyingChildSSN’ that has a value on Line 2, must match that in the e-File database.
   -          You will see this together with the first reject (R000-504-01) because the IRS checks both the dependent information and the information you submit for the Earned Income Credit. If the name does not match on one, it does not match on the other either. The IRS does not just check one, because sometimes you can have a qualifying child for the earned income credit who is not a dependent. These both mean that the Social Security number and the name don’t match what the IRS has on file. As with the reject R0000-504-01, verify the Social Security number and the name with the Social Security card, and if they match, have the taxpayer contact the Social Security Administration to correct their information.
4. R0000-500-01: ‘PrimarySSN’ and ‘PrimaryNameControlTxt’ in the Return Header must match the e-File database.
   -          This is another reject for the mismatch for the name, but in this case it is for the Taxpayer. Correct this reject by verifying the name and the Social Security number with the SS card. If it matches exactly as it was typed, then have the Taxpayer contact the Social Security Administration to get the information corrected in their system. This could take up to 2 weeks to update. They can contact the Social Security Administration at: 1-800-772-1213.
5. FW2-502: Form W-2, Line B ‘EmployerEIN’ must match data in the eFile database.
   -          This is another mismatch, but this one is for the employer listed on the W2. Verify the employer Id number entered on the W2 against the actual document supplied by taxpayer. If it is incorrect, reenter the information and resubmit the efile. If the information matches the actual document, have the taxpayer contact the issuer of W2 to verify that the EIN listed is the actual number.
6. IND-031-01: ‘PrimaryPriorYearPIN’ or ‘PrimaryElectonicFilingPIN’ or ‘PrimaryPriorYearAGIAmt’ in the Return Header must match the e-File database.
   -          The prior year information entered for the taxpayer doesn't match what the IRS has on file. Verify what is entered for the prior year pin or agi, matches what is on the original prior year tax return. You can also use the practitioner pin option as an alternative, because it doesn't require prior year information.
7. R0000-503-01: Taxpayer TIN in the Return Header must not be the same as a TIN of a previously accepted electronic return for the return type and tax period indicated in the tax return.
   -          A return with the same Social Security number for the same filing year has already been accepted by the IRS. If you believe this is a mistake, you can paper file the return. If you believe the taxpayer is a victim of identity theft, visit the following website to help the taxpayer take action:
   -          https://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft
8. SEIC-F1040-506-01: Each ‘QualifyingChildSSN’ that has a value on Schedule EIC (Form 1040A or 1040), Line 2 must not be equal to another Qualifying Child SSN on another accepted return for the same tax year.
   -          You will also see this reject along with 0000-507-01, where the dependent Social Security number was already used on a return. Somebody has already filed a return claiming this
   -          Social Security number for the Earned Income Credit. The taxpayer must remove the dependent as a qualifying child for the earned income credit, to be eligible for electronic filing. If the taxpayer believes this to be in error, leave the dependent listed for the qualifying child and mail a paper return.
9. F1040-512: Each Dependent’s SSN on this return cannot be used on another return as a Primary or Secondary SSN with Line 6a checkbox ‘ExemptPrimaryInd’ or Line 6b checkbox ‘ExemptSpouseInd’ checked on that return.
   -          This reject means that the Social Security number for the dependent that you listed has already been used on a return where this person claimed his/her own exemption. Verify the dependents rejected Social Security number matches the Social Security card. If the information matches exactly, then remove the dependent in order to be able to efile the return. If the taxpayer believes the reject to be in error, then leave the dependents information and file a paper return. The dependent may also need to file an amended return removing the exemption. The taxpayer can also contact the IRS at: 1-800-829-1040 for additional instructions.
10. IND-046: The IRS e-File database indicates that the filer must file Form 8862 to claim the Earned Income Credit because it was previously disallowed, but the return does not include Form 8862.
    -         This taxpayer is claiming Earned Income Tax Credit and has been denied this credit in a prior tax year. You must add Form 8862 to the return to be reconsidered for claiming the Earned Income Tax Credit. Once you have added and completed Form 8862, you will need to re-create and re-submit the e-File.
11. SEIC-F1040-535-01: Each Qualifying child's social security number that has a value on Schedule EIC and the Qualifying Child Year of Birth must match what is on file in the IRS e-File database.
    -         Verify the qualifying child's Year of Birth on the child's birth certificate. If the actual birth certificate matches your entries exactly, have the Taxpayer contact the Social Security Administration at 1-800-772-1213 to correct the Social Security Administration records. This process takes approximately two weeks for the information to be updated in the IRS e-File database.

Retirees May Face April 1, 2015 Deadline for RMDs

Federal Tax Day - Current,I.1,Retirees May Face April 1, 2015 Deadline for RMDs (IR-2015-55),(Mar. 20, 2015)

The IRS has reminded retirees who turned 70 ½ during 2014 that they may need to begin receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement accounts by Wednesday, April 1, 2015. The April 1 deadline only applies to the first year; the RMD for subsequent years must be made by December 31. A taxpayer who turned 70 ½ in 2014 would receive the first required payment on April 1, 2015, and the second one by December 31, 2015. Worksheets and life expectancy tables for making the computation can be found in IRS Publication 590-B. Affected taxpayers who turned 70 ½ during 2014 must figure the RMD for the first year using their life expectancy as of their birthday in 2014 and their account balance on December 31, 2013.

Some owners of workplace plans can wait longer to receive RMD. Employees who are still working can wait, if their plans allow, until April 1 of the year after they retire to begin receiving distributions. Employees of public schools and certain tax-exempt organizations with Code Sec. 403(b) plan accruals prior to 1987, should check with their employers, plan administrators or providers with respect to treatment of the accruals. Taxpayers are encourages to begin planning for distributions that may be required in 2015.

Reference

IR-2015-55

1120 Business Returns Filing Deadline

Tax Year 2014 Business Returns - Form 1120 Family

2014 e-file Calendar
Transmitting timely filed Form 1120 family returns and Forms 7004	Calendar Year	March 16, 2015
Transmitting timely filed Form 1120 family returns and Forms 7004	Fiscal Year	15th day of third month after Tax Year end
Retransmission rejected timely filed Form 1120 family returns and Form 7004	Both	10 day perfection period
Transmitting returns on extension from Forms 7004	Calendar Year	September 15, 2015
Transmitting returns on extension from Forms 7004	Fiscal Year	15th day of ninth month after Tax Year end
Retransmitting rejected returns on extension from Forms 7004		10 day perfection period

Extensions

Don't miss out on a chance to increase your Income Tax profits! Begin e-filing your client's Business extensions.  You can increase your profits and provide better customer service by offering your clients the peace of mind that the 7004 provides.

• Assurance that the IRS will receive the extension on time, as you will receive an IRS acknowledgement receipt
• Assurance that the extension will not be "lost in the mail"
• Best of all, it's fast and easy to e-file extensions

7004 General Information

It is suggested to submit any extensions by 10:00 PM YOUR local time on the filing deadline. The last day to retransmit rejected timely filed Forms 1120 or Extension Forms 7004 and gain IRS acceptance is 10 days after the required filing date for your particular type of return.   The cost for each E-filed extension is $5.00.

7004 Instructions

1.     Open the return for which you wish to complete the extension and fill in the information regarding the company name.

2.     Select Yes to the Do you want to electronically file this return? question.

3.     Select either Form 7004 without direct debit or Form 7004 with direct debit for the What form(s) are you e-filing using PINs? question.

4.     Complete the information on Page 1 of the 1120 for the Signing officer for e-filing, Officer Information, and Preparer Information.

5.     On Form 7004, select the check box at the top of the page to indicate you are using this form.

6.     Run diagnostics and correct any errors you may receive.

7.     Click Extension E-File to create an e-file.

8.     Close the return, and then select Send Federal/State Returns to on the Communications menu.

System Update 2014.29.07 Notification

Refunds Today System Update 2014.29.07 is now available for download.

Refunds Today recommends you download and install this update as soon as possible.
You may download the update from the Refunds Today secure website at www.refundstoday.com.

• Login with your user name (office number) and password then click on "Downloads"
• In the Left Pane select "1040 Program and Forms" and then choose Refunds Today System Update to begin the download.

IL now processing e-file returns

The Illinois Department of Revenue has indicated that they are now accepting and processing e-filed returns.  However, they have cautioned that acknowledgements will be delayed for several days as they process through the backlog.

IRS to make MeF changes this weekend to resolve certain rejections

The IRS will make changes to their production processing systems this weekend.  The updates will address Rejections for IRS Form 8962 with rejection codes F1040-0428 and F1040-0429. 

We suggest that you hold these returns until the IRS completes their updates which should be completed by February 9th.

Update: Delayed IRS Acknowledgements

We received the following information from the IRS and are passing it along to you.  You can read the entire release here.

Attention: Software Developers and Transmitters The length of time for the MeF System to create federal acknowledgments and make them available for retrieval is taking longer than expected.  The IRS is closely monitoring the acknowledgment rates and is working to close the gap as a top priority. Please monitor the MeF Status Page for updates. Thank you for your patience and support.