Understanding IRS Reject Codes, E-File Errors, and What to Do Next

A rejected tax return can feel alarming, but rejection does not mean you are under audit or that the IRS has denied your refund. It simply means your return could not be processed in its current form. When the IRS rejects a return electronically, the system assigns a reject code that identifies the exact problem preventing acceptance. These codes explain the error and give taxpayers a chance to correct and re-submit the return.

Knowing how these codes work helps taxpayers fix issues quickly and avoid refund delays.

What a Rejected Return Actually Means

A rejected return means the IRS system could not accept your return because something on the filing did not match IRS records or required information was missing. A rejected return is not the same as:

• being audited
• having a refund denied
• or having identity theft

Rejection simply stops the return from entering processing.

The IRS Will List a Reject Code and Explanation

When a return is rejected, you will receive a code such as:

• IND-031
• IND-032
• R0000-500-01
• F1040-068-03

Each reject code identifies a specific issue such as:

• mismatched SSN
• dependents claimed incorrectly
• incorrect birth dates
• duplicate filing
• missing information
• invalid processing year

These codes guide the correction.

Common Reject Reasons

Typical causes of IRS rejection include:

• Social Security mismatch
• dependent already claimed
• incorrect date of birth
• incorrect filing status
• missing income documents
• incorrect AGI from prior year
• duplicate return already filed

The IRS cross-checks electronic returns against federal data before acceptance.

Dependent Issues Are One of the Most Common Rejections

If two taxpayers claim the same dependent, the second return submitted is usually rejected automatically. In that situation, the IRS cannot determine which claim is correct electronically, so one filer must fix the return or provide documentation later.

Prior-Year AGI Mismatch Is a Frequent Filing Issue

For identity verification, IRS requires the prior-year AGI. If the AGI does not match IRS records, the return may be rejected. Many taxpayers encounter this issue after changing tax software or when filing for the first time following identity theft or transcript changes.

Mistyped Numbers Cause Many Instant Rejections

Even a single incorrect digit in:

• Social Security numbers
• birth dates
• routing numbers
• AGI entries

can prevent acceptance.

You Can Correct and Resubmit a Rejected E-File

A rejected return does not stop you from refiling. Once the error is corrected, simply resubmit the return electronically. Most rejections are resolved within minutes once corrections are made.

If You Cannot Fix an Issue Electronically

Certain problems require mailing a paper return such as:

• dependent disputes
• identity verification complications
• prior identity theft flags

Paper returns take longer to process but sometimes are required.

Tax Software Will Show the Exact Reject Code

Most online filing systems will display:

• the reject code
• a brief description
• instructions for correction
• steps to resubmit

These instructions come directly from IRS rejection logic.

A rejected return does not mean a denied refund. It simply means IRS systems could not accept your return electronically because information did not match federal records. The reject code you receive explains the specific error, allowing you to correct the issue and resubmit your return for processing.