Reject Code F1099R 505 02 — Correction Required on Tax Returns

conectier-reject code F1099R-505-02

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. 

conectier-reject code F1099R-505-02

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

What is Reject Code F1099R 505 02?

Your tax documents need correction.

Why does the IRS want me to file a paper return when F1099R 505 02 occurs?

IRS does not allow filing electronically when this error happens to prevent EIN-related fraud.

What is Form 1099R used for in the reject code F1099R 505 02?

Form 1099R is used to report distributions from pensions, annuities, retirement plans, and other similar accounts.

When should Form 1099R be filed?

Form 1099R should be filed annually, either with your tax documents or separately.

How can I obtain a copy of Form 1099R?

You can obtain a copy of Form 1099R from the IRS website or by calling their toll-free number.

What is an EIN?

An EIN is an Employer Identification Number, which is a unique identifier assigned to businesses and organizations by the IRS.

Do I need an EIN to file Form 1099R manually if F1099R 505 02 reject code occurs?

Yes, you will need to include the EIN for the payer on Form 1099R.

What is Form 8948 used for?

Form 8948 is used to report information about questionable tax positions taken on a tax paper.

Why might I need to include Form 8948 when filing Form 1099R manually?

You may be required to include Form 8948 due to IRS fraud prevention measures.

How can I obtain a copy of Form 8948?

You can obtain a copy of Form 8948 from the IRS website or by calling their toll-free number.

Can I file Form 1099R and Form 8948 electronically when I receive the reject code F1099R 505 02?

No, if you receive the above reject code you must file a paper return.

What should I do if I have questions or need assistance with filing Form 1099R and Form 8948?

You should consult with a tax consultant or contact the IRS directly for help.

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