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Your tax return might get rejected if final 12 months’s submitting is pending

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When you’re one of many tens of millions of Individuals nonetheless ready in your 2020 tax return, you will have to take a particular step to keep away from a rejection for this 12 months’s digital submitting, in line with the IRS.

When submitting digitally, you validate your return with the earlier 12 months’s adjusted gross earnings. Usually, your tax submitting software program has these particulars should you’re a returning buyer. In any other case, you’ll be able to manually enter the numbers.

Nonetheless, the validation course of modifications with a pending 2020 return.

If final 12 months’s return remains to be in limbo, you will have to enter $0 for your 2020 AGI when submitting on-line, stated Nationwide Taxpayer Advocate Erin Collins in a listening to with the Home Methods and Means Oversight Subcommittee.

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“That means you’ll be able to file electronically and you do not have to file a paper return,” she stated. “We have to get that message out to taxpayers.”

Whereas these instructions solely apply to digital filers, the company urges everybody to file electronically with direct deposit to avoid delays.

Practically 94.3% of particular person tax returns had been filed electronically in the course of the fiscal 12 months 2020, according to the IRS.

And there are similar instructions for non-filers, who usually embody sure Social Safety recipients or these with yearly earnings under the usual deductions.

When you used the non-filer software in 2021 to gather the advance child tax credit payments or your stimulus examine, the IRS says to place $1 for final 12 months’s AGI.  

“I might suppose hardly anyone is aware of about that one,” stated licensed monetary planner Larry Harris, director of tax providers at Parsec Monetary in Asheville, North Carolina.

When you do not observe these directions, the IRS might not settle for your digital return, stated Tommy Lucas, a CFP and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.

“We have seen that from people making an attempt to file themselves,” he stated, explaining how AGI conflicts might set off a complicated rejection electronic mail from their tax-filing software program.  

‘Lacking return’ notices

Your return can also be pending should you received a CP80 notice a couple of lacking 2020 return.

When you received this discover and it nonetheless hasn’t been accepted, it’s best to enter $0 on your 2020 AGI when submitting this season, stated Lucas.

“They will present $0 of their system, so that is what I might begin with,” he stated. 

But when the IRS rejects your return with a 2020 AGI of $0, they could have processed final 12 months’s return after sending the discover, Lucas stated, that means you’ll be able to re-file your 2021 return along with your precise 2020 AGI.

Whereas it could be tough to succeed in the IRS by cellphone, you’ll be able to double-check the standing of your 2020 tax return by downloading a free IRS transcript out of your on-line account.

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