Paper file a rejuected return

[MarkCTX]

We attempted to efile Federal only but was rejected on the 14th and again on the 15th. Software folks weren't much help either. From what I can find we have 5 business days to successfully re-efile or 10 calendar days to paper file. That is what I find in Pub 1345. Client wants to paper file as soon as possible. Pub 1345 says we have 10 days to paper file and include an explanation with the return. Should we also send a copy of the rejection notice? Then where to we file it? The regular place as if he had paper filed in the first place? Form 8453 is only for certain documents and that form with the docs goes to a special address in Austin TX. The instructions aren't clear on this issue. Any experience with this issue? Where is it covered in the instructions?

[BOB W]

Attach rejection notice to the 1040 and mail it to the normal paper return address.

[DaveinTexas]

Hmmm

What was the rejection note/code? I just wonder if it was ID Theft related...

[MarkCTX]

I don't believe it was ID theft. The error had to do with state income tax refunds not matching the Federal.

[MDEA]

Reject return

Why don't you post the reject it may be able to be fixed and it can be e-filed?

[FEDUKE404]

Need to verify the amount shown on line 10 of Form 1040

I don't believe it was ID theft. The error had to do with state income tax refunds not matching the Federal.

Never heard of that one before, especially at time of efiling. While there are exceptions, most state refunds (reported via Form 1099-G) should make their way to line 10 of Form 1040.

The most common (layman) error is to report the refund for the "working" year (such as prepared in 2014) and not the underlying tax year (such as 2013). It gets even worse when the 2013 refund is somehow reduced or netted out by tax payments not made/calculated until 2014.

It's been my experience that most states will not issue a Form 1099-G when they "know" the person took the standard deduction, or used the optional state sales tax tables for Schedule A. I assume this is because the IRS and state tax computers "talk" to each other.

There are indeed valid worksheets within much tax software which will calculate the amount which must be reported on line 10. A common example is when estimated taxes are paid the same year the state refund is received or even considering the extra taxable refund that would have occurred "above" the amount generated by the sales tax tables (you DO fill that in, correct?). In many cases you are offered the optional choice of reporting (by allocating) the "full" refund on the front page of Form 1040, and the full "deductions" on Schedule A, *OR* you can report the reduced "calculated" amount on the front page of Form 1040 and a smaller around on Schedule A. (That comes in handy when AGI considerations might be an issue.)

In any case, if you can resolve the nature of the error (as seen by the IRS) you can simply efile again. If you are fully content "your" numbers are correct, both on line 10 of Form 1040 and on line 5 of Schedule A, you have no choice but to paper file. You should also attach Form 8948 (I don't think Form 8453 is appropriate. . .).

BTW: I do assume you did view the original state tax return with the questioned refund amount?

FE

[Lion]

For most of my clients, some or all of the state refund received during the year did NOT benefit them/did not benefit them fully, because it was reduced or eliminated due to AMT the prior year. But, there's a worksheet that calculates the amount taxable this year.