The taxpayer's return was rejected with R0000-932-02 (previously R0000-902), which says that it has already been filed and accepted. Is this a case of identity theft?
Per the IRS QuickAlert released on June 25, 2020: "Effective immediately for Tax Year 2019 and subsequent years, BR R0000-932-02 will replace BR R0000-902-001 if a duplicate return is submitted."
IRS Reject R0000-932-02 states:
If "Amended Return" or (Superseded for 1120/1120S/1120-F/1041/1065) checkbox is not checked, then taxpayer TIN in the Return Header must not be the same as a TIN of a previously accepted electronic return for the return type and tax period indicated in the tax return.
Questions to answer before you consider identity theft:
- Did you accidentally transmit the return twice?
- Has the taxpayer filed the return with another tax preparer, or filed it themselves?
- Did the taxpayer file an EIP return (2019 only)?
If the answers to these questions are “No,” you can assist your client by directing them to the IRS.gov web page Taxpayer Guide to Identity Theft:
"Know the warning signs
Be alert to possible tax-related identity theft if you are contacted by the IRS or your tax professional/provider about:
- More than one tax return was filed using your SSN.
- You owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return.
- IRS records indicate you received wages or other income from an employer for whom you did not work.
Steps to take if you become a victim:
If you are a victim of identity theft, the Federal Trade Commission recommends these steps:
- File a complaint with the FTC at identitytheft.gov.
- Contact one of the three major credit bureaus to place a ‘fraud alert’ on your credit records:
- Equifax, www.Equifax.com, 1-800-766-0008
- Experian, www.Experian.com, 1-888-397-3742
- TransUnion, www.TransUnion.com, 1-800-680-7289
- Contact your financial institutions, and close any financial or credit accounts opened without your permission or tampered with by identity thieves....
- Complete IRS Form 14039, Identity Theft Affidavit, if your e-filed return rejects because of a duplicate filing under your SSN or you are instructed to do so."
Additional IRS Resources:
Form 14039 is available within Drake Tax Software -- navigate to screen 1403 - Identity Theft Affidavit on the Other Forms tab, or to the Tools menu > Blank Forms to print a blank copy of the form.
If you accidentally e-filed a tax return twice, generally when one is accepted, the other is rejected with the code R0000-902, stating the return was already accepted.
If this is the case, you can correct the display in your software as follows:
- If the return is shown as rejected in the Personal Client Manager (PCM) or Client Status Manager (CSM), click on the EF menu, and select Search EF Database. Type the SSN or name and click Go. Review the records listed at the bottom of the window to verify the return status.
- You can also review the entries on the ESUM screen (located on the Miscellaneous tab in data entry, ADMIN login necessary), within the return to verify the status of each transmission.
- You can manually set the client status in the CSM to reflect the accepted status. See Related Links below for more information.
If both transmissions are rejected, make any necessary adjustments, recalculate, and re-transmit the return.
If the return that was accepted first was not accurate, you may need to file an amended return.
For tax year 2019, this reject will also apply to individuals who had filed an Economic Impact Payment (EIP) return prior to filing their regular 1040 or 1040-SR return. Per the IRS:
"If a filer used the Non-Filers tool to register for EIP, they cannot file a subsequent tax return electronically. They must complete a paper Tax Year 2019 Form(s) 1040/1040-SR, print and write “Amended EIP Return” at the top, and mail the return to the IRS. The tax return must be mailed by the postponed due date of July 15, 2020 to avoid late-filing penalties and late fees. Please visit the Economic Impact Payment Center page on IRS.gov for upcoming information regarding duplicate returns related to EIP."