What is Rejection Code IND 147 of the IRS?

conectier-What is Code IND 147

IND 147 is a reject code that taxpayers may receive if they are first-time homebuyers required to make installments but didn’t. A notice usually accompanies this by the IRS mentioning the rejection and how you can solve the problem. 

conectier-What is Code IND 147

Why Does Reject Code IND 147 Occur?

Taxpayers face the reject code IND 147 as they are required to pay a single payment when they purchase their home for the first time. This should be included in their tax returns, and the error will occur if they fail to do so. 

The payment made to the IRS is a certain percentage of the overall cost of the home. This payment must be made when filing taxes in the year the home was purchased. If you fail to make the payments, the IRS will not accept your tax returns until you do so. 

How to Resolve IND 147 IRS Rejection Code?

If your tax filing has not been accepted and you receive the IND 147 IRS rejection code, it is very vital that you should take immediate steps to resolve the problem. 

  • The foremost action you should take if you are a first-time homebuyer is to make the installment payments in full to the authorities. This payment may include penalties or interest, if any, due to the delay. 
  • Once you pay the IRS, you must file a rectified tax return to resolve the IND 147 code. 
  • Ensure all documents related to your purchase are attached, including proof of purchase and calculating the amount paid. 

To avoid penalties and other charges from the IRS concerning the above code, immediate action on resolving it is necessary. 

Learn also about, Rejection Code IND 526

What is E-file Rejection Code IND 147 in TurboTax?

The use of tax software provides the convenience of filing your returns correctly and on time. However, rejection codes, such as IND 147, if the IRS information does not match yours. You can complete the following steps to resolve this issue in your e-filing application.

  • In TurboTax, sign in to your account.
  • Choose the option where you see open or continue with returns.
  • Look for homebuyer credit. You can use the search box. 
  • On the search results. 
  • Choose the Jump to link.
  • Type yes. 
  • Enter the date when the house was brought. 
  • Follow the guidelines displayed on the screen 
  • The application will calculate the tax.
  • Click re-submit to file your returns. 

In some instances, it will be likely that you don’t owe any tax. In such a case, you can use the lookup provided by the IRS for first-time home buyer data. This is a very effective tool for verifying your status and making amendments as required. When all is verified, click to file electronically. 

Note: if the rejection code IND 147 persists, printing and mailing your returns to the IRS is the only solution.

IND 147 is a rejection code by the IRS issued to first-time homebuyers who have failed to pay installment payments. Following the steps above, you can resolve the issue immediately to avoid additional penalty charges. 

Frequently Asked Questions

What is the First-Time Homebuyer Installment Payment?

The First Time Homebuyer Installment Payment is a requirement by the IRS. 

Why is the payment necessary?

It is to help promote affordable housing and encourage home ownership.

What happens if I fail to include the payment with my tax return?

Failure to pay will result in tax returns being rejected until you make the required corrections.

What should I do if I receive an IND 147 error code on my tax return?

IND 147 code indicates that the IRS hasn’t received payments concerning your first home purchase. This should be done in full, along with interest or penalties.

What documentation do I need to include with my amended tax return?

Proof of purchase and calculation of the amount is required to correct the issue.

How can I avoid the IND 147 error code in the future?

You can avoid this rejection code by paying on time the installment payment when filing returns for the year the home was bought.

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