Many taxpayers are confused as to why the IRS is rejecting their 2019 tax returns when they haven’t filed as yet.
There’s a reason for this, and you may be caught off guard if it happens to you.
Did you use the IRS’ Non-Filers Tool?
There are two tools, the Get My Payment Tool and the Non-Filers Tool.
With the IRS system in place for stimulus payments, the only individuals targeted to use the Non-Filers tool had to have social security benefits or did not have any requirement to file a 2019 tax return. Typically, these taxpayers are retired individuals.
If you used the IRS non-filers tool to update your stimulus payment information, you electronically filed a tax return. The stimulus registration method led to taxpayers filing a return instead of simply updating their payment information.
That being said, here are the rejection codes and the steps you need to take next.
The next steps
Here are the following e-file stimulus rejection codes that you may encounter if you used the IRS tool.
The IRS rejection will say that you cannot electronically file an already accepted return. You will then need to amend your tax return. In order to file your tax return with the correct information, you will need to file Form 1040X with your corrected information.
However, if you did not have income, you are not expecting a refund or owe the IRS, you do not need to amend your taxes.
Here’s how we can help you
If you encountered a stimulus rejection, we can amend your tax return once you reach out to us. We have worked with customers who have received this rejection due to the IRS’ miscommunication of the stimulus tool. However, amended returns cannot be e-filed, so you must mail your amended form to the IRS.
When preparing your return, you will then get a PDF to download, print, sign and mail to the IRS. The pricing of all amended returns are based on the complexity of your tax return.
If you have any questions, do not hesitate to reach out to our tax professionals.
Don’t wait until it’s too late.
If you incorrectly used the IRS tool and you expect to owe the IRS each tax year, it’s advised that you file as soon as possible. This way, you will avoid excess penalties and interest tacked onto your tax due.
As a reminder, the failure-to-pay penalty applies to you if you did not report the correct tax liability on your original return.
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