Business

Reasons Why Your Income Tax Papers Are Rejected

Every business owner or taxpayer citizen might have come across a point where they have just avoided a tax penalty or have paid a fine. This could be due to several different reasons. Still, when International Revenue Services, also known as IRS, rejects a tax file, it is primarily due to either a mistake in the documentation or it was incomplete.  

This is justifiable considering the complex nature of filing income tax returns. The IRS has a different clause that governs the tax filing procedure, and not everyone is well-versed in it. That is why many individuals hire a professional for income tax return filing in Naples. This reduces the probability of your income tax file being rejected and missing out on minute details and deadlines. 

List of reasons why income tax returns are rejected

  • Incorrect Personal Information

The personal information you enter in the tax papers is essential and is checked thoroughly to identify your identity. Any personal or professional information changes can lead to your income tax file being rejected. Sole proprietorship information or any family partnership should have its social security number and must be mentioned in the documents with accurate relationship, date of birth, etc.

  • Mismatch in the credentials

The IRS receives confirmation about your identity from The Social Security Administration, and the SSA has its database with your information. Typos in the name, age, or social security number could lead to the IRS rejecting your income tax returns. As the information that you have entered does not match the information that the SSA has.

  • Failure to sign the Returns

Your signature on the income tax returns paper confirms that all the information provided is correct and to the best of your knowledge. Due to several reasons, individuals fail to sign these papers, whether it is an electronic signature or a physical one. Failure to do so may result in your income tax returns being rejected.

  • Invalid PIN

The IRS uses your PIN, personal identification number, or previous years’ gross income against fraud. Every taxpayer has their PIN, which they must enter while filing for taxes. If you entered your PIN incorrectly and it does not match what the IRS is aware of, your tax return can be rejected.

Before you file your taxes, you must ensure that you read all the laws and the procedure to file your income tax return, or the best way suggested is to hire a professional to do this for you. They will accurately assess your information and then start filing your taxes according to the suggested procedure by the IRS.