When filing taxes, especially as a tax professional, a tax return rejected by the IRS can be a huge setback. Now you have to go through and verify all the information again and try to find where it went wrong. Swiftfp is here to help! In this article we discuss some common reasons for tax returns getting rejected and how to fix them.
Verify Taxpayer’s Information
It’s the classic expression, “an ounce of prevention is worth a pound of cure.” Taking a few extra minutes to review your return or confirm information with your client can save you and your tax business plenty of headaches. Mismatched or inaccurate person information makes up the majority of rejected returns so make sure to verify all information before submitting it to the IRS.
Dependent Claims
Another common reason for the IRS to reject a tax return is if a dependent claimed on that return is already claimed on another return or the dependent filed their own return that year. This mostly becomes an issue when you and your spouse are filing separately, divorced, or when the dependent is independent enough to file their own tax return. Make sure to know who is claiming who on their taxes before you file.
Form 8962
Did you or your client receive a subsidy to help pay for your health insurance you received through an Exchange? Then they will be required to file a Form 8962.
Any electronically (or paper) filed return will be rejected by the IRS if the taxpayer received a subsidy for their health insurance and did not include a Form 8962. The information you will need to fill out Form 8962 can be found in Form 1095-A (Health Insurance Marketplace Statement).
Conclusion
Taxes shouldn’t have to be complicated. If you have had problems with the IRS in the past then consider hiring a tax professional to help you maximize your tax return and minimize the chances of an audit. IF you are a professional tax preparer then consider SFP Works.
SFP Works is an e-file software for tax and accounting professionals. It includes a “Verify” function that will show you any problems the tax return may have before you file it with the IRS, that means you can rest easy knowing the returns you file won’t be getting rejected. Find out more when you check out our free demo.
