If a federal tax return is rejected for a dependent SSN/Name Control mismatch, the return can be re-transmitted and accepted by the IRS if the Imperfect Return Election is made. This election can only be made if the original return rejected with reject code SEIC-F1040-501-02 or R0000-504-02. Returns transmitted with the Imperfect Return Election will be acknowledged by the IRS with the acknowledgement code E (Exception).
Before retransmitting a return with the Imperfect Return Election, we recommend working with the taxpayer to ensure that the correct dependent name and SSN have been entered on the tax return. The taxpayer can visit any Social Security Office and receive a printout of this information.
The IRS will review any tax return transmitted with the Imperfect Return Election to verify the accuracy of the dependent information. This review process will delay processing the return and any refund will typically be processed in 4-6 weeks after acceptance. If the IRS cannot verify the dependent data, the taxpayer may be disqualified from claiming the dependent and any refund may be reduced.
After a return has rejected for SSN/Name Control mismatch, the Imperfect Return Election option will appear in the E-file process on the Return Details step under Federal Return.
When a return is being sent imperfect, the taxpayer is not eligible to use a bank product.
It is important to collect your fees before e-filing returns under this exception.
Note: The IRS will send a notice to the taxpayer advising them of any changes made as a result of the Imperfect Return Election. Ensure that changes made by the IRS due to the election are corrected in the taxpayer's tax return so that the proper dependent information pulls forward next year.