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How to avoid a tax filing rejection if last year’s return is pending

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IRS has a backlog and is still going through many millions of unfiled returns. Your 2020 electronic filing can be made if you are included in this pileup.

As of March 11, the agency had processed over 61.9 million returns, with approximately half being self-prepared and most filed electronically. the IRS reported.

The IRS will validate your self-prepare electronic filing by comparing the adjusted gross income for the preceding year to the current one. There is a slightly different procedure for filers with an pending 2020 return.

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You’ll have to notify the authorities if last year’s return remains uncertain. enter $0 for your 2020 AGIOnline filing is a good option, stated Erin Collins, National Taxpayer Advocate at a House Ways and Means Oversight Subcommittee hearing.

This way, you can electronically file and do not need to fill out a paper form,” she stated. That message must be sent to all taxpayers.

Although these instructions only pertain to digital filers the agency strongly encourages everybody to submit electronically via direct deposit. avoid delays.

Nearly 94% of all individual tax returns filed electronically in fiscal 2020 were electronic. according to the IRS.

There are many. similar instructionsNon-filers include, typically, certain Social Security recipients and those with an annual income lower than the standard deductions.

To collect the money, you could have used the non-filer instrument in 2021 advance child tax credit paymentsYour stimulus check or the IRS asks you to pay $1 last year for your AGI.  

Larry Harris, a certified financial planner, said that “I think almost nobody knows about this one.” He is the director of tax services at Parsec Financial, Asheville, North Carolina.

The IRS might reject your electronic return if you do not follow the instructions. Tommy Lucas is a CFP who works as an agent for Moisand Fitzgerald Tamayo Orlando.

“We have seen it from people trying to file by themselves,” he stated, explaining that AGI conflicts can cause confusing rejection emails from tax-filing software.  

Not enough 2020 returns

You may have a pending return if your tax returns are not filed. received a CP80 noticeAbout a 2020 missing return

Lucas stated that you need to enter $0 in your 2020 AGI if this notice is not accepted.

He said, “They are going to show $0 on their system. So that’s where I would begin with.” 

If the IRS rejects your tax return and gives you a 2020 adjusted gross income of $0 (which may be the case), Lucas explained that they could have sent the notice last year. This means that your 2021 return can be filed with your actual 2020 AGI.

It may not be possible to call the IRS, but you can check the status and download a document. free IRS transcriptAccess your online account.

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