IRS Notice IR-2022-130

[huntsdabibil]

I have a tax return that we are attempting to e file an amendment for. The amendment is for a change of dependent that was claimed on another tax return in error. According to this notice from the IRS, they said that they would allow e-filing of an amended return even if a dependent was claimed on another tax return. We attempted to e file this return yesterday and this is the response on the rejection letter.

Error Detail:
'DependentSSN' in 'DependentDetail' on the return was used as a Dependent SSN on a
previously filed tax return for the same tax period.

Error Resolution:
This reject frequently occurs when the dependent's SSN on this tax return was present as
a dependent on another tax return, or the dependent already filed a return without
indicating they would be claimed as a dependent on another return.

Anyone have any insight on this new notice from the IRS and does it work with e-filing through ProSeries?

[IRonMaN]

The other return needs to be amended and clear the system before you can e-file the amended return you are trying to process.  It takes awhile --------- a long while for that other return to be cleared up.

[huntsdabibil]

The other return has not and will not be amended as the person purposefully claimed a dependent when they should not have. How I am reading the notice, that should not matter unless I am comprehending it differently.

[Just-Lisa-Now-]

Unless the other return has been amended to remove the dependent, you wont be able to EF this return. IRS wont electronically accept 2 different returns with the same dependent claimed.

[TaxGuyBill]

I'm not sure how to interpret that part of the IRS statement.  You MIGHT be right that it would be able to be e-filed with the IRS. I think we have been able to submit a dependent after the prior submission was 'cleared' for quite a while, which would support the interpretation that you are right and this new statement means we can submit a duplicate before the dependent is 'cleared'.  But I'm not sure. 

However, that last time I checked, Intuit also had their own rejection for duplicate taxpayers submitted through them.  So it is possible that even if the IRS were to be able to accept the e-file, that Intuit might be rejecting it before they sent it to the IRS.  But again, I don't know for sure.

[Just-Lisa-Now-]

I heard Drake has a way to force through a filing with a Dependent that has been claimed on another return...maybe as an "imperfect" return (that seems to stick in the back of my brain)? I dont use Drake, so Im only going by what Ive seen mentioned in other tax groups.

[huntsdabibil]

I talked with ProSeries support and the rejection I am getting is definitely coming from the IRS.

So as it is right now, the way I was reading the notice seems to be incorrect unless the IRS e-file system has not been updated to support this duplicate dependent issue.

Anyone know a way to get a response from the IRS about this 😑

[ljr]

if the other return "is never going to be amended" then this would have to go in as a paper return. In reality this situation needs to resolved with a person at the IRS - you will not be able to get the efile system to get this to go through. This will end up being a situation where your client needs to prove their return is the correct one.