A business return may reject with code R0000-900-01:
The return type indicated in the return header must match the return type established with the IRS for the EIN.
Depending on the entity there are several possible reasons why this reject can occur, but the resolution to both is the same:
- Mail the return.
- Call the IRS E-help Desk for assistance on the next steps to take. See here for more information about the E-help desk.
S corporation
For an S corporation return, there are several possible reasons why this reject occurs:
- If this reject occurs in a year other than the C corporation's initial year, it indicates the C corporation may not have filed Form 2553 with the IRS making the S corporation election. Thus, the IRS still sees them as a C corporation needing to file Form 1120. (Form 2553 is filed separately from the tax return, either by mail or fax, never with the tax return.)
- The corporation has received Notice CP261 from the IRS approving the S corp election, however the effective date is next year, not this year.
- The state the entity is incorporated in informed the IRS that the entity is no longer in good standing, In other words, the state and the IRS are treating the corporation as having been dissolved. (You can generally confirm this online at the state's Secretary of State business search website.)
- The IRS records reflect that this business is some other kind of entity, i.e., a partnership reporting on Form 1065, a C corporation reporting on Form 1120, or a disregarded entity reporting on Schedule C filed with the owner's individual tax return.
Partnership
For a partnership return, this reject generally means a different type of return was filed for this EIN for the previous year. Presumably the business was not a partnership last year, thus they should have applied for a new EIN when the partnership was formed.