The following are some common reasons for that the IRS rejects e-files created by preparers who use professional tax software:
Error Code Error Title Error Description
F1099R-002
Form W-2/
W- 2G/ 1099-R – Missing or Invalid Data
If Form 1099-R has a US Address in the Payers Address, then State must have a value.
F1099R-003
Form W-2/
W- 2G/ 1099-R – Missing or Invalid Data
If Form 1099-R has a US Address in the Payers Address, then Zip Code must have a value.
F1099R-004
Form W-2/
W- 2G/ 1099-R – Missing or Invalid Data
If Form 1099-R has a US Address in the Payers Address, then the first five digits of the Payers Zip Code must be with in the valid ranges of Zip codes listed for the corresponding State Abbreviation. SeePublication 4164on the IRS web site.
Chapter 3: Creating and Transmitting E-files
Error Code Error Title Error Description
IND026
Self-Select PIN Taxpayer's Prior Year AGI Mismatch
If PIN Type Code in the Return Header has the value "Self-Select Practitioner", and Primary Date Of Birth has a value, then Primary Prior Year AGI or Primary Prior Year PIN or Primary Electronic Filing PIN must have a value.
IND-028
Self-Select PIN Taxpayer's Prior Year AGI Mismatch
If PIN Type Code in the Return Header has the value "Self-Select Practitioner", and Spouse Date Of Birth has a value, then Spouse Prior Year AGI or Spouse Prior Year PIN or Spouse Electronic Filing PIN must have a value.
FD0372
Form 1040/1040A – Required
Information is Missing
If Form 1040, Line 51 Child Tax Credit or Line 65 Additional Child Tax Credit has a non-zero value, then the sum of Line 51 and Line 65 cannot exceed an amount equal to $1000 times the number of qualifying children.
E-file Statuses
This table defines the terms that can appear in the Status column of the E-file Manager.
Status Description
Created
The e-file has been created and the return is ready to be transmitted to the e-file server, or EFC.
If you make any changes to the return after this point, you must re-create the e-file.
Held Indicates you have marked this return Held to prevent it from being transmitted until later.
Transmitted to EFC
The return has been successfully transmitted to our Electronic Filing Center (EFC). Its status on our server does not allow it to be retransmitted.
Transmitted
to Agency We have transmitted this return to the appropriate tax agency.
Chapter 3: Creating and Transmitting E-files
Status Description
Rejected
Changes were made to the return after creating the e-file but before transmitting it to the EFC. You may have added or removed forms, printed cycling forms (estimated vouchers, etc.), or edited and saved the return in another way. To ensure the e-file reflects the current return, you must re-create the e-file before transmitting it.
Rejected by EFC
The return did not pass our validation process and has not been transmitted to the IRS or state. SeeCorrecting E-file Rejection Errorsfor instructions on
correcting the errors.
Rejected by Agency
The e-file was successfully transmitted to and received by the IRS or state, but it contained errors. SeeCorrecting E-file Rejection Errorsfor instructions on correcting the errors.
Accepted Return was successfully transmitted to and received by the IRS or state. It has now been processed and validated. This is the final status for most e-files.
E-filing Extensions, Estimated Payments and Payments
The program allows you to create extensions and estimated payments as allowed by the taxing agency.
Examples include:
l Federal Extensions - 7004 (business)
l State Extensions - NY CT-5 (New York, business)
l State Estimated - NY NYC-400 (New York)
If they are present in a return, each of these items appears as a separate item in theCreate E-file Dialog.
For the small number of states that allow them, the system also allows you to create and submit payments after the return is e-filed.
To create and e-file an extension, estimated payment, or payment:
1. Start the application.
2. In Return Manager, click the New button.
The Select Forms dialog appears.
3. In the Find field, enter your search criteria, such as extension, estimated, or payment.
4. Press Enter.
A list of forms appears.
5. Highlight the desired form and press Enter.
Chapter 3: Creating and Transmitting E-files
7. To name the extension, estimated payment, or payment, click Save.
The Return Name dialog appears.
8. Enter a name for this extension, estimated payment, or payment; then, click Save.
9. Click the E-file button.
The Create E-file dialog appears. The following screen captures show results for a federal extension:
The following screen capture is an example of an estimated payment:
10. Follow the message directions in the dialog to add required forms; or, resolve any other problems indicated by the message.
When every problem is resolved, the corresponding checkbox is enabled.
11. Click the checkbox for the item for which you want to create the e-file.
12. Click the Create button.
Chapter 3: Creating and Transmitting E-files
The E-file Creation Results dialog appears. If your e-file is not created due to errors, you'll see the following message:
13. If your e-file has errors:
l Open each error in the Check Return pane and fix it.
l After you've fixed each error, click the Re-Create E-file(s) button.
Repeat this until your e-filed Federal Extension is created successfully:
14. Click the OK button.
15. To view the e-file, click E-file Manager.
The E-file Manager appears:
16. Select the checkbox beside the item you want to e-file.
17. Click the Transmit button on the toolbar.
The Transmit Marked E-files dialog appears:
Chapter 3: Creating and Transmitting E-files
18. Click the Transmit Marked E-files button.
The Transmitting... dialog appears:
When the transmission of the extension is complete, the Transmitting... dialog turns into the Transmission Results dialog:
19. Click Close.