e-filing 1040x for taxpayer with rejected SSN due to stimulus application

[ejdtaxman]

I was instructed, after calling the practitioner priority line, to file an amended return for a client whose e-file was rejected due to a duplicate SSN. the root of the problem is that the guy went on the website and entered his info to apply for stimulus payment, and apparently this creates and submits a 1040 automatically with 0 data on it, for people who didnt yet file a 2019 return. However, because his SSN is attached to that no-data return, the e-file was rejected because the 0 data return is already on record. I was told anyone who who put their data in this application would have such a automatic return created and that was the reason the IRS is allowing the 1040-X to be e-filed this year. 

I understand that only returns that were originally e-filed can have the corresponding 1040-X e-filed as well, however in this case considering that the taxpayer entered his information online, shouldn't this be considered e-filed? Or are we only able to file the 1040-X for clients whose original return was e-filed from the same exact software? This is not clear in the FAQ. 

In light of the fact that probably hundreds of thousands of people may run into this problem, and apparently this is the entire reason the IRS is allowing this in the first place, I would have thought intuit would allow us to e-file the 1040-X so the client can receive a refund quicker and not have to wait an absurd amount of time. Any suggestions appreciated. 

[rbynaker · Accepted solution]

I didn't think they could be efiled.  From an IRS email back in early July:

Taxpayers who used the “Non-Filers: Enter Payment Info Here” tool to register for an Economic Impact Payment and need to file a 2019 tax return must file a paper 2019 Form 1040 or 1040-SR tax return by mail with “Amended EIP Return” written at the top and pay tax owed by July 15.

The Economic Impact Payment’s Non-Filers tool was not intended to be used by taxpayers who also needed to file a tax return with the IRS for tax year 2019. If you used the tool to register for a payment, you cannot file your tax return electronically. You must complete and print a paper 2019 Form 1040 or 1040-SR tax return, write “Amended EIP Return” at the top, and mail it to the IRS by July 15. If you owe tax, you should pay it in full by the July 15 due date. Interest will be charged after July 15 on any amounts that are not paid by July 15. 

These same instructions apply if you registered for your Economic Impact Payment using the IRS Non-Filers: Enter Payment Info Here tool, tax software, or a paper tax return indicating $0 or $1 of adjusted gross income. If you have a copy of the document that registered you for the Economic Impact Payment, you can include it when you file Form 1040 or 1040-SR.

Tax Professionals please note that returns labeled “Amended EIP Return” will be processed as superseding returns if submitted before July 15 or, with a valid extension, before Oct. 15.

Rick

[Just-Lisa-Now-]

ProSeries says you had to file the original with your software....so Efiing an amendment for an original done on the non filer site, cant be done.

https://proconnect.intuit.com/community/proseries-tax-news-updates/discussion/individual-amended-for...

Can all Individual Amended filing types be e-filed?
Only an e-filed Form 1040 or 1040-SR can be amended. An original return that was paper filed cannot have an e-filed amended return. The original return must have been e-file through your ProSeries software.

[Terry53029]

E-Filing a 1040X for clients that had a 2019 1040 E-Filed in ProSeries is a Intuit restriction only, and will be changed in the future

[sjrcpa]

I doubt this is the reason IRS is allowing 1040X to be efiled this year. Its been in the works for a while. They announced it before any one realized how many idiots would ignore the instructions on the IRS website and create an "I don't have to file a 2019 tax return but I want my EIP" return.

[ejdtaxman]

just more info that people on that line have no idea what they're talking about. oh well. 

[ejdtaxman]

thanks for the info I wish it was better news. Now I have to mail 1040X and the guy will wait till next year for his refund, oh well.