Receiving the reject code F1099R-505-02 from the IRS means that you are required to correct your tax documents. This denial code points out that the EIN or the employee identification number does not correspond according to the form 1099 and also the records held by the IRS, and needs to be corrected.
When you receive the F1099R-505-02 code, you must note that you cannot file your tax online as the IRS wouldn’t allow it. This is because they need the taxpayer to file a paper form return including form 8948. The EIN issued in the current year of the tax cannot be used electronically as governed by IRS fraud prevention. The first year is used to validate the EIN by the IRS.
In case your EIN is not correct with the IRS then you may receive a reject code F1099R-502-02.
Frequently Asked Questions
Your tax documents need correction.
IRS does not allow filing electronically when this error happens to prevent EIN-related fraud.
Form 1099R is used to report distributions from pensions, annuities, retirement plans, and other similar accounts.
Form 1099R should be filed annually, either with your tax documents or separately.
You can obtain a copy of Form 1099R from the IRS website or by calling their toll-free number.
An EIN is an Employer Identification Number, which is a unique identifier assigned to businesses and organizations by the IRS.
Yes, you will need to include the EIN for the payer on Form 1099R.
Form 8948 is used to report information about questionable tax positions taken on a tax paper.
You may be required to include Form 8948 due to IRS fraud prevention measures.
You can obtain a copy of Form 8948 from the IRS website or by calling their toll-free number.
No, if you receive the above reject code you must file a paper return.
You should consult with a tax consultant or contact the IRS directly for help.