Avoiding EF Rejects

If you've ever had a return rejected by the IRS, you know it can be time consuming to find the error and correct it so the return may be retransmitted quickly. We've gathered some e-filing tips along with information about the most common reject codes.

The most important things to look for before filing a return are any variances in SSNs, birthdays, and the spelling of taxpayers' and dependents' names. This data must match what is on file with both the Social Security Administration and the Internal Revenue Service. Errors in these fields are responsible for the majority of IRS rejects and can usually be easily avoided by careful documentation and preparation.

No matter how careful or accurate you are when preparing returns, there is always room for error that may result in rejected returns. Click below for a list of the most common reject codes with an explanation of what causes them.

Reject Codes

Reject Codes 670, 679, 681, 682 - PIN Returns
This year, the most common reject codes are related to Self-Select PIN (Personal Identification Number) returns. It is important to include both AGI and tax for taxpayer and spouse (when applicable) when filing a PIN return. The IRS will check AGI and tax to verify that it matches what is on file for the taxpayer's prior year return.
Note: The IRS uses unamended AGI and tax for verification.

Reject Code 770 - No Preparer
If you are transmitting a return with no paid preparer indicated, you should not mark yes or no at the bottom of the form where it asks, "May the IRS discuss this return with the preparer shown below?"

Reject Codes 677, 678 - Primary & Secondary Taxpayer Identification
This error occurs when the primary or secondary taxpayer is ineligible for the Self-Select PIN program. The following individuals would be considered ineligible for the Self-Select PIN program:
• Taxpayers who have been issued a Social Security card with Not Valid for Employment printed on the card
• Taxpayers whose returns require attachments other than Forms W-2, W-2G, or 1099-R
• Taxpayers under the age of 16 who did not file an income tax return the prior year
• Taxpayers who are deceased
• Taxpayers who filed Forms 1040-NR, 1040-PR, or 1040-SS the prior year.

Reject Codes 501, 502, 503, 504, 506, 507 - Name and SSN Mismatches
501: Either the SSN, name, or year of birth does not match the Social Security Administration's records. Contact your local SSA to verify the SSN. 502: The Employer Identification Number and Employer Name on the W-2s, W-2Gs or 1099s do not match what is on file with the IRS. Always watch for misused company abbreviations. 503: The spouse's SSN and name do not match the SSA/IRS records. This reject usually occurs when a newlywed wife has not officially changed her name. 504: The dependent's name and SSN do not match the IRS master file. 506, 507: Earned Income Credit has already been claimed for this dependent or the dependent has already been claimed on another return. This error can be due to a custody dispute in a divorce proceeding.

Reject Code 029 - EFIN Not Authorized
This error will be indicated if your EFIN has not been activated at the appropriate IRS Service Center. The easiest way to prevent this error is to activate your EFIN at all five Service Centers before the season begins, which can be done through your home Service Center.

Reject Code 370 - Child Tax Credit
Incorrectly entering a child's age or birth date or miscalculating their age can cause this error. Keep in mind that the IRS uses their records to determine age. Usually, the IRS's record of the child's date of birth is correct; double check with the taxpayer to verify the date of birth.

Reject Code 900 - Primary SSN
The taxpayer's SSN was previously accepted on another return. If you receive this reject code, first make sure the SSN was keyed in correctly. If the SSN was entered correctly, the return must be filed on paper and mailed to the IRS.

Reject Code 904 - SSN Duplicates
This occurs when the same return is transmitted multiple times within the same drain. The IRS has standard drain times when they retrieve files for acknowledgement. If a return containing the same SSN as another return is retrieved at the same drain time, error 904 may occur. When you receive this reject code, you should simply retransmit the return.

Reject Code 123 - Incomplete W-2 Information
The following fields from a W-2 are required for a return to be accepted: Employee Name, Employee Address (including City, State, and Zip Code), and Wages. If any of this information is not present for any W-2, the return will be rejected and will receive this error.