Rejected Return

[Cheryl48]

Hoping for some suggestions.... client's return was rejected because dependent sons decided they were no longer dependents... older son told younger that "dad doesn't know what he's talking about" and took him to a questionable preparer who filed for ed credits for both ( in addition, preparer filed for state ed credits that they do no qualify for). AND charged then each over $200.

I did amendments with the boys and they returned their refunds. Last week both of their checks had cleared. In the meantime, I filed for an extension for my client. He has numerous rentals, a Schedule C and W-2s and I dread mailing the return. Client has meticulous records.

Does anyone know if efiling will be possible? Or should I just mail the return? Any suggestions will be appreciated...

Cheryl

BTW, client managed to get the son's fees back by going to the local TV station, who ran a feature on their experience.

[erchess]

This has been talked about before

recently and I think the consensus was that Amended returns take so long to process that you can't count on being able to efile this client at all. I think the best thing to do would be to hand deliver the return to the nearest IRS Office and get a receipt.

[taxea]

Just had a similar issue...waited for son's return to hit IRS computer then efiled client. It rejected. IRS efile office, when called, said that the program, as set up, does not reset the son's SSN so it still shows as a non-dependent. Client will have to manually file return.

[FEDUKE404]

Stuck with paper

You CAN efile the dad's (original?) tax return, but the end result will continue to be a rejection if he claims the now-he-IS-a-dependent child. Taxea also addressed this aspect. (Well, he could efile without the dependent(s), and later amend to include same....but that accomplishes very little.....)

Essentially you are stuck with mailing (or whatever) a paper return, and then letting the IRS/state sort things out for the parent.

I am curious about the TV news follow-up. What exactly did the commercial preparers do "wrong" (other than acting upon the request of their clients?) to justify a fee return?? Granted - a good preparer likely should have asked a few more questions of the youth...but then again, you get what you pay for! I wonder if some "instant money" might have also been involved?

FE

[joanmcq]

You have to paper file. You can do that now (or once the return is complete).

[taxmom34]

why

wait for son's return to hit IRS computers before efiling parents return. you know it's going to be rejected!
i would have efiled parents return and wait for son's return to get rejected.

[Cheryl48]

You CAN efile the dad's (original?) tax return, but the end result will continue to be a rejection if he claims the now-he-IS-a-dependent child. Taxea also addressed this aspect. (Well, he could efile without the dependent(s), and later amend to include same....but that accomplishes very little.....)

Essentially you are stuck with mailing (or whatever) a paper return, and then letting the IRS/state sort things out for the parent.

I am curious about the TV news follow-up. What exactly did the commercial preparers do "wrong" (other than acting upon the request of their clients?) to justify a fee return?? Granted - a good preparer likely should have asked a few more questions of the youth...but then again, you get what you pay for! I wonder if some "instant money" might have also been involved?

FE

The TV story was actually pretty good... the boy's preparer(s) refused to be interviewed, so the interviewer talked about knowing your preparers credentials and that you are responsible for what is in your return when you sign it even if you don't prepare it..

I was very uneasy about the other preparer(s). Two different people did the returns, yet both returns were signed by the same person.

Both boys attended community college (lower tuition), yet the max was listed on their ed credits. (The boys did take in their 1098-Ts).

In Michigan there is an ed credit for three colleges, not the one the boys attend. The nameless preparer entered the full credit for one of the boys and then did not include the form in their packet. I discovered this by chance, when I was trying to recreate the return to do the amendment.

So... probably just pushing the envelope while doing the returns and not doing much of an interview, getting high fees for rapid refunds.

The boys and I had a nice talk about what makes you independent.... "Did you pay any rent or mortgage? Did you pay for groceries? Did you pay for any utilities? Did you pay for your car? Did you pay for insurance? Did you pay for your tuition or books?" Answer to all... no.

All in all, it was a good life lesson for the boys. For dad and mom, not so much.

I just printed out the mail in returns for them.... I'm not a happy camper.

[Cheryl48]

wait for son's return to hit IRS computers before efiling parents return. you know it's going to be rejected!
i would have efiled parents return and wait for son's return to get rejected.

Son's had their refunds before I efiled the parents return... dad had discussed their filing status with them before they filed. Gotta love those kids!

[Nashville]

Paper Returns

Cheryl this is a good thread.

Sometimes it amazes me the lengths to which we will go to avoid filing paper returns. Cheryl's thread is a good example. Dad's return WILL eventually e-file if the client is willing to wait long enough for the boys' change to be assimilated into the IRS computers. Wonder how long that will be?

It's as if filing a paper return is becoming a lost art -- like we're going to die right there on the spot if we can't e-file. Friends of mine who are preparers will dicker around for days and days screwing around with a return that keeps getting rejected and their very waking moments are spent wondering if the return will get through today because now we have updated information after even more phone calls to the client, more changes, etc.

If we're running into rejections because WE make critical mistakes in preparation, then fix them and try again. If we're rejected because of disputed or impaired information from the client, just paper file the danged thing and tell the client it won't e-file because of the problems. And be done with it.

[Burke]

And I am here to tell you -- it's not so bad at all. I paper-filed all returns this year, each one with 8948 attached, because the IRS had my efile application pending for four months. BTW, I finally got it Monday, with an issue date of 4/19/11! Four days after the season ended. And the only refund I know of that is delayed is an amended return, which would have been paper-filed anyway. All others processed in about 3-4 weeks federal, and 2-3 weeks state. No one has complained.