Common 1040 Rejects – Previously Accepted Returns/Previously Claimed Dependents

Each year one of the common reasons an electronically filed return will reject is when the IRS has already accepted a tax return that was filed by someone (primary taxpayer or spouse) that is filing this tax return, and the IRS will not accept a second return electronically with the same taxpayer identification number (SSN). This reject can occur because the taxpayer has already electronically filed a tax return for the current year (possibly with another preparer) or the ERO has inadvertently attempted to electronically file the return a second time.

This reject may also occur when the taxpayer (or spouse) has been the victim of identity theft and somebody other than the taxpayer (or spouse) has filed a fraudulent tax return on the taxpayer’s (or spouse’s) behalf. In such cases, the taxpayer should contact the IRS Identity Theft Hotline at 800.908.4490 as soon as possible and the IRS will provide guidance on how to proceed with the filing of the return. Multiple variations of this reject code exist depending upon whether it is the Taxpayer, Spouse or even a Dependent that has filed a previously accepted return.

A second common reject occurs when the IRS has previously accepted an electronically filed tax return where another taxpayer has claimed a dependent that is also being claimed on this return. An example of this reject is set forth below:

 

R0000-507-01 – ‘DependentSSN’ on Line 6c(2) of the return was used as a Dependent SSN in a previously filed tax return for the same tax period.

 

When this reject occurs, the return cannot be electronically filed with this dependent on it and a paper return will be required in order to claim the dependent on the tax return. In this situation it is common that some other taxpayer such as a non-custodial parent (or even some other relative such as a grandparent, aunt, or uncle) has claimed the dependent and the IRS will ultimately have to determine the proper taxpayer to claim the dependent. When filing a paper return, the taxpayer claiming the dependent should not attach any documentation regarding their claim. Instead, the taxpayer should wait for the IRS to request the information they may need to make a determination.