Why Would the IRS Require Further Information After E-filing?
The IRS reports that e-filed returns have an average error rate of just 1 percent, compared with 20 percent for paper returns. The tax agency has been pushing taxpayers to take advantage of its e-filing options --- filing your return electronically can greatly reduce the chances of making a mistake. Even so, there are common mistakes related to e-filing. If you make one of these mistakes, you could find yourself on the receiving end of an inquiry from the IRS.
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Wrong EIN
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Every employer has a unique employer identification number, or EIN. If you enter thte wrong EIN it could delay the processing of your return or even trigger an inquiry by the IRS. The EIN for your employer is listed on your W-2, and it is important to verify that number before you move on with your return. If you worked for more than one company, make sure that each EIN is correct and that you do not tranpose the EIN from one W-2 to the other.
Missing Income
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If you fail to report all of your income when you file your taxes, you can expect a follow-up letter from the IRS. The tax agency receives copies of every W-2 and 1099 filed for your Social Security number, and it uses matching programs that compare the income you reported with their own figures. If a discrepancy exists, the IRS follows up with the taxpayer for further clarification, and possibly additional taxes as well. If you have income from multiple sources it is important to wait until all those income documents have been received before e-filing your taxes.
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Transposed Numbers
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When you complete your taxes electronically, the software program you use automatically adds up the figures you enter. But the software cannot determine whether the figures you enter match the figures on your documents. Transposing a number by entering 54 when you meant to enter 45 can trigger a mismatch between the income information the IRS received from you and the income you reported. As you enter each 1099, W-2 and other income document, take a minute to double-check the numbers and correct any errors before moving on to the next section.
Incorrect Routing or Account Number
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When you file your taxes electronically, you can request that your refund be directly deposited to your bank account, or that any money you owe be withdrawn from that account. If you enter the wrong routing number for your bank, or the wrong account number, the IRS cannot complete these transactions. Since it is so easy to make this kind of mistake, double- and triple-check the accuracy of the routing number and the account number before you e-file your taxes.
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References
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