Tax Return Rejected? Here's What to Do

Rejections aren't easy to cope with -- especially when they come from the IRS.

Many people are familiar with the concept of a tax audit, where the IRS reaches out and asks for more information to finish processing a return. But what if your tax return is rejected outright?

Getting your tax return rejected may come as a surprise. But here's what to do if it happens to you.

Why tax returns get rejected

The IRS will commonly reject a tax return when it has missing information, or information that's deemed erroneous. You may end up having your tax return rejected if you:

• Enter the wrong Social Security number
• Enter the wrong date of birth
• Misspell your name (hey, it can happen to the best of us)

The IRS will also generally reject a tax return if it already has a return on file with the same Social Security number -- even if you entered the right one. In fact, criminals will commonly file tax returns in other people's names and steal their refunds by diverting those funds to their own bank accounts. It's for this reason that taxpayers are often advised to file early -- to avoid a scenario where their returns are flagged as duplicates.

Either way, if your tax return is rejected, you'll generally get a notice about that in the mail. Or, in some cases, the tax-filing software you use may notify you that your return was rejected.

How to address a rejected return

If your tax return is rejected, you'll often be told why -- and you'll then have an opportunity to correct the issue. Say the IRS sends you a notice that your return was rejected because the Social Security number it contained could not be found or verified in the agency's database. In that case, you can resubmit your return with the correct Social Security number to fix the problem.

Now, if you're dealing with a rejected return due to a criminal having filed a fraudulent one in your name, that issue may be a little more complicated to resolve. But don't panic; instead, contact the IRS and ask what to do. The IRS may need you to submit additional documentation to prove you did not, in fact, submit the fraudulent return, and that your current return is the correct one.

Keep in mind that in many cases, you can resubmit an electronic return if your return is rejected. But in some cases, you may need to file a resubmitted return by mail. The IRS will generally offer guidance in that regard. But keep in mind that if you need to submit your corrected return by mail, it will most likely delay your refund. It generally takes the IRS twice as long to process refunds for paper returns as it does electronic ones.

How to avoid a rejected tax return

In some cases, there may not be anything you can do to prevent your tax return from getting rejected, such as if a criminal files a fraudulent one in your name early on in the season. But one easy way to avoid a rejection is to proofread your return carefully before submitting it. Better yet, enlist the help of a spouse, family member, or friend to give it a second look if you're filing solo.

Sometimes, it's difficult to catch an error you make yourself, but it's easier for a second set of eyes to spot one. Taking that step could spare you some hassle.