Reject code for a dependent

[Jtax LLC]

Has anyone had a return get rejected because the dependent was claimed on another return? This has happened twice this tax season. The children are biologically their children and there is no way any other person claimed them on their return (not divorced, no split-custody). Is this an IRS issue or a Proseries issues, you think? I am having them paper file and get a PIN for them for the future but it's odd....

[BobKamman]

How old are the kids?  Is this the first year they had a job and received a W-2?  Did they learn in class how to file a tax return online?

[Jtax LLC]

The first one it happened on was 8 years old. The second one was 7. So it couldn't be that...

[BobKamman]

Sounds like identity theft then.  

[taxiowa]

They do not have to paper file 2025 tax return.  If you did not read the reject notice give it to the taxpayers and maybe they can read it.  Especially the last paragraph.

[anniebear]

It’s definitely an IRS issue. Proseries does not match SSN numbers.

someone got hold of their info it sounds like.

[Jtax LLC]

I have a question regarding IRS IP PINs and timing. The notice instructs the taxpayer to go online and obtain an IP PIN, but in this situation the return has already been filed using that Social Security number.

How does obtaining an IP PIN now apply for the current filing season if the return has already been accepted? My understanding was that IP PINs are preventative and apply to future filings rather than retroactively.

For those of you who have encountered this scenario, have you seen cases where a taxpayer obtained an IP PIN after filing and it still had an impact for the current year? Or is this strictly something that will only apply going forward?

Appreciate any insight or real-world experience on this

[dd4vols]

are you sure the return was accepted?.  a rejected return is NOT a filed return.  If that is the case, when you get the IP Pin, the IRS will know to accept the return. And this is not the IRS's fault. Someone (probbly in South Florida), has filed a return using the kid's information.

[Terry53029]

@Jtax LLC Happened to a client of mine. return was rejected (means same as never filed) Client got a PIN refiled, and accepted. The pin is only for efile. Client could have mailed the return with a letter explaining what happened, but that would take months. Took him less than 30 minutes to get pin

[IntuitCatinaT]

This is a new procedure the IRS started last year for TY2024. It allows returns that claim dependents who have already been claimed on another taxpayer’s return to be efiled.

If a dependent has already been claimed on a previously filed return and your client's return is rejected, the client can get an Identity Protection Personal Identification Number (IP PIN) for the dependent and you can re-...

Like Terry53029 said, this only allows you to efile the return. It doesn't resolve the fact that the IRS has two tax returns claiming the exact same person, so they will still investigate.

Here are some good references:

IR-2024-294

Age, name or SSN rejects, errors, correction procedures

Protect Yourself From Tax-Related Identity Theft: Get an Identity Protection PIN

[Jtax LLC]

Thank you so much! Do they have to get a PIN every year after that? Or is it just a one time thing? I don't want an 8 year old to be stuck having to get a PIN every year.

[IntuitCatinaT]

This will require the dependent to have an IP Pin attached to their ssn every year for the rest of their lives, but that is not a bad thing. 

This number changes every year and is mailed out every January, but the IRS makes it fairly easy to retrieve the IP PIN if they don't get the letter or misplace the number. Having an IP PIN prevents anyone from filing a return for them or with them included on a return so it prevents a lot of future headaches, especially with all the identity theft that happens.

Each dependent needs their own separate IRS online account because IP PINs are issued to individuals. The parent/guardian can manage the process, but the IP PIN is tied specifically to the dependent’s SSN/ITIN and must be entered on the tax return. 

Here is the process for the parent/guardian:

• Parents can use their own IRS account to request a PIN for a child, but they must verify the child's identity, or they can use Form 15227.
• If they cannot create an account for them, they can request an IP PIN by mail using Form 15227.
• Once obtained, the dependent’s unique 6-digit IP PIN must be entered on their tax return when they claim them.