My IRS tax return was rejected

[Ready]

I've tried e-filing twice through Turbotax and received two rejections.

Last year we filed separately. He filed his tax return on paper. I'm required to enter both my and my spouses 2020 AGI for verification, which I did. I confirmed the amount matches the amount on last year's tax returns. They rejected the return stating that his AGI does not match their records. Mine is apparently correct.

So I figured I would pull a transcript from the IRS to see what they have on record for his AGI, and I received this message:

"As of the date of this letter, we have no record of a processed tax return for the tax period listed above".

He owed money on his return and included a check for the full amount with the return. The check was cashed.

Is it possible that while they cashed his check they did not process his paper return that he mailed in?

 

[Jerry1]

I've tried e-filing twice through Turbotax and received two rejections.

Last year we filed separately. He filed his tax return on paper. I'm required to enter both my and my spouses 2020 AGI for verification, which I did. I confirmed the amount matches the amount on last year's tax returns. They rejected the return stating that his AGI does not match their records. Mine is apparently correct.

So I figured I would pull a transcript from the IRS to see what they have on record for his AGI, and I received this message:

"As of the date of this letter, we have no record of a processed tax return for the tax period listed above".

He owed money on his return and included a check for the full amount with the return. The check was cashed.

Is it possible that while they cashed his check they did not process his paper return that he mailed in?

My guess is that is exactly what has happened.

 

[aja8888]

I've tried e-filing twice through Turbotax and received two rejections.

Last year we filed separately. He filed his tax return on paper. I'm required to enter both my and my spouses 2020 AGI for verification, which I did. I confirmed the amount matches the amount on last year's tax returns. They rejected the return stating that his AGI does not match their records. Mine is apparently correct.

So I figured I would pull a transcript from the IRS to see what they have on record for his AGI, and I received this message:

"As of the date of this letter, we have no record of a processed tax return for the tax period listed above".

He owed money on his return and included a check for the full amount with the return. The check was cashed.

Is it possible that while they cashed his check they did not process his paper return that he mailed in?

Absolutely they can lose a return, just like mine was lost in 2017. It took me three years to straighten it out. Or it still sits in the pile of mail that was generated during the pandemic when all IRS agents were not there.

 

[Ready]

Wow, that's pretty scary. Is there any way to confirm a paper return with a balance due was really processed, since cashing the check obviously isn't proof? I know I can request an online transcript but I'm thinking that might not be available until after the taxes are considered due and it's too late.

 

[easysurfer]

Any chance did you need an IRS PIN to file?

I'm one of the folks that do from ID theft in the past.

 

[Ready]

Any chance did you need an IRS PIN to file?

I'm one of the folks that do from ID theft in the past.

It asked me to enter a five digit pin but said I could choose anything I wanted, rather than requiring something that had previously been established. I think this is part of their electronic signature procedure.

 

[easysurfer]

It asked me to enter a five digit pin but said I could choose anything I wanted, rather than requiring something that had previously been established. I think this is part of their electronic signature procedure.

Ok. I was thinking more of the IRS PIN that I get via snail mail each year. I know for those who require one, filing will get rejected without.

 

[Ready]

Ok. I was thinking more of the IRS PIN that I get via snail mail each year. I know for those who require one, filing will get rejected without.

I don’t believe we received one of those so I don’t think that would be necessary. But if the IRS is confirming they don’t have a 2020 tax return on file it seems logical that they can’t confirm the 2020 AGI figure and therefore won’t process the return electronically. I have a feeling this could take years to resolve.

 

[easysurfer]

I saw an article recently about if you get a rejection letter don't fret. I'll see if I can find it.

found.... (not sure if totally related to your situation)

Imagine having filed and paid your taxes last year, then months later you get a letter in the mail from the IRS saying you didn't.

That's what's happening to many taxpayers this year thanks to automated notices being sent by the IRS.
But if you got one, don't panic. There's a fair chance the IRS simply hasn't seen what you already sent in. That's because it's dealing with a mountain of returns and correspondence that has built up over the past two years. During that time, the agency was called on to deliver several rounds of economic impact payments and other financial Covid-19 relief, while trying to protect its own workforce from Covid.

https://www.cnn.com/2022/02/11/success/irs-tax-letters-suspended/index.html

 

[Doribe]

I am still waiting for my 2020 return to be processed. I messed up with the electronic file and ended up sending in a paper return a little late. The post office shows the paper copy was delivered. They owe me so I won't have to worry about a penalty. I assume I will eventually get my refund.

The big problem is that I did tIRA to Roth conversions in 2019. Social Security/Medicare is using the 2019 income for 2020. The cost for Medicare is way out of my ability to pay. With the current situation DH and myself both will have to pay $615 per month when it should be $177 each.

There was a time limit to appeal and I was able to get an appeal in. I think I did a thorough job of explaining the situation and providing backup documents. SSI said to just sent a copy of my 2020 return even though it was not processed by the IRS. SSI has received the appeal but has not processed it yet. DH was told by SSI to call every 15 days to get it pushed to the process area faster.

DH is due to start his SSI in a couple of weeks so I imagine they will start taking it out of his check.

When I mess up, I don't fool around.

 

[Jerry1]

I don’t believe we received one of those so I don’t think that would be necessary. But if the IRS is confirming they don’t have a 2020 tax return on file it seems logical that they can’t confirm the 2020 AGI figure and therefore won’t process the return electronically. I have a feeling this could take years to resolve.

I think you’re correct. I think all you can do now is file hard copy. If you are due a refund, I would roll it forward to the next tax year so you don’t have to fight for your refund. You might try getting hold of the IRS but I’m personally not optimistic.

Personally, I’d try to get them to acknowledge the return and fix the problem until time runs out on April 15th.

 

[Gumby]

I hear the IRS consistently whine about their problems with paper returns. This is my question for the the IRS commissioner -- Why should we care about your problems when you do not care about ours? People try to file electronically, which would help your problems, but you reject that filing and then provide absolutely no way for people to contact you to straighten things out. So people are forced to file by paper, which exacerbates your problems. Do you want to fix your problems or not? From where I sit, it sounds like not.

 

[Jerry1]

I think there’s a limit to how many times you can try to file so be careful with what I’m about to say.

I wonder if it would go through if you enter zero for his agi. In that same vein, I wonder if there is anyone who can “force” it through. Maybe there’s some trick of the trade that a CPA firm might have for some of these types of issues.

 

[Phroig]

The IRS says to enter $0 for your AGI if your 2020 return hasn’t been yet processed. See https://www.irs.gov/about-irs/the-2...rns from,return when they file electronically.

 

[cathy63]

I've tried e-filing twice through Turbotax and received two rejections.

Last year we filed separately. He filed his tax return on paper. I'm required to enter both my and my spouses 2020 AGI for verification, which I did. I confirmed the amount matches the amount on last year's tax returns. They rejected the return stating that his AGI does not match their records. Mine is apparently correct.

So I figured I would pull a transcript from the IRS to see what they have on record for his AGI, and I received this message:

"As of the date of this letter, we have no record of a processed tax return for the tax period listed above".

He owed money on his return and included a check for the full amount with the return. The check was cashed.

Is it possible that while they cashed his check they did not process his paper return that he mailed in?

Yes. Mail with money in it is opened first and checks are cashed immediately, but the returns just go in the pile to be processed later. The fact that it hasn't been processed yet doesn't mean it's lost. Try entering $0 for his AGI. That usually works, although there was someone else on this board earlier today where that didn't help.

 

[jazz4cash]

IRS sent us a letter stating they had not received our paper return after many months. We contacted the Taxpayer Advocate and were told that means it was not logged in and the backlog of paper returns was >12 months. We got our refund 3 weeks later.

 

[Doribe]

I think you’re correct. I think all you can do now is file hard copy. If you are due a refund, I would roll it forward to the next tax year so you don’t have to fight for your refund. You might try getting hold of the IRS but I’m personally not optimistic.

Personally, I’d try to get them to acknowledge the return and fix the problem until time runs out on April 15th.

My situation has some similarities as far as my 2020 was not processed. I didn't roll the refund forward because I want the troublesome year to keep its problems in the same tax year.

If the 2020 return has not been processed, I have no idea when the forward roll will occur. I would rather wait for the 2020 return to get sorted out and keep everything as clean as possible going forward.

 

[Ready]

The IRS says to enter $0 for your AGI if your 2020 return hasn’t been yet processed. See https://www.irs.gov/about-irs/the-2...rns from,return when they file electronically.

Yes. Mail with money in it is opened first and checks are cashed immediately, but the returns just go in the pile to be processed later. The fact that it hasn't been processed yet doesn't mean it's lost. Try entering $0 for his AGI. That usually works, although there was someone else on this board earlier today where that didn't help.

Thank you both so much!!! I re-filed my return using $0 for AGI and it was immediately accepted. This forum has given me so much great advice over the years. I don’t know what I would do without you folks!!

 

[SecondCor521]

Ok. I was thinking more of the IRS PIN that I get via snail mail each year. I know for those who require one, filing will get rejected without.

There are two different PINs, which can be a bit confusing.

An IRS Identity Protection PIN is six digits long and is sent to the taxpayer every year, and they must use it in order to file (as @easysurfer says).

An e-file PIN is five digits long, and is used during e-file, but can be any five digits chosen by the taxpayer.

 

[CaptTom]

...People try to file electronically, which would help your problems, but you reject that filing and then provide absolutely no way for people to contact you to straighten things out. So people are forced to file by paper, which exacerbates your problems. Do you want to fix your problems or not? From where I sit, it sounds like not.

I feel the same way. Their software screwed up and I was unable to file electronically. The only option they presented to report a problem like this came with a disclaimer mentioning a ridiculous wait time. I sent in a paper form and now I suspect I'll be in paper form hell for years.

Funny thing is, I don't blame the commissioner or the staff. Congress approves their budget, and Congress assigns their workload. Everyone loves to hate the IRS, so politicians love to jump on the bandwagon against them.

It would be counter-productive for politicians to properly fund the IRS (or the Post Office.) If those agencies had the resources to do their jobs well, it would be one less opportunity for campaigns to drum up hatred and malcontent. Which of course is how you win elections.

 

[RobLJ]

I was going to post a similar post to CaptTom, but in brief the IRS has been starved of resources for years. This is not to excuse the IRS completely, but this has been by design by Congress.

It is what it is. We're waiting for IRS/Turbotax to update their foreign tax credit form before we can file for 2021, apparently that will be around Feb 24. Between a required 20% tax withdrawal for my 403b (a lot more than we owe) and an E-vehicle credit, it's about 20% of our yearly budget for which we are waiting; at least we're not in hell for a non-accepted return for last year (and we don't need the money), so I feel your pain.

I feel the same way. Their software screwed up and I was unable to file electronically. The only option they presented to report a problem like this came with a disclaimer mentioning a ridiculous wait time. I sent in a paper form and now I suspect I'll be in paper form hell for years.

Funny thing is, I don't blame the commissioner or the staff. Congress approves their budget, and Congress assigns their workload. Everyone loves to hate the IRS, so politicians love to jump on the bandwagon against them.

It would be counter-productive for politicians to properly fund the IRS (or the Post Office.) If those agencies had the resources to do their jobs well, it would be one less opportunity for campaigns to drum up hatred and malcontent. Which of course is how you win elections.