This reject code indicates a mismatch between the EIN entered on a W-2 in the return, and the IRS EIN database. The reject message will indicate the W-2 in question, so if the message says, “Additional Information: XXX-XX-1234”, the W-2 whose EIN ends in 1234 is the one triggering the reject.
To correct Reject Code FW2-502:
- Verify the EIN that is entered in the return matches the W-2 provided by the taxpayer. If the data entered on the return is incorrect, make the correction and retransmit the return.
- If the information entered on the return matches the tax document, the taxpayer can contact the payer to verify the documents are correct. They can get a corrected Form W-2 if possible, or the return can be filed using Form 4852 as a substitute.