Drake Tax - 1040: Imperfect Return Election

Imperfect return election and when it can be used

The Imperfect Return election must be activated in Setup > Options > EF. Once activated, you can invoke it in a return on the EF screen by checking the box Imperfect return election.

Returns that have been rejected by the IRS can be re-transmitted and accepted if the Imperfect Return Election is marked, but only if the rejection was with a code of SEIC-F1040-501-02 or R0000-504-02.

An acknowledgment code of "E" will be sent for e-filed imperfect returns.

Consider the following before marking a return with the imperfect return election:

• A return filed with this election will go into review mode while the accuracy of the dependent data is verified.

• You should expect this review process to cause a delay of any refund that is similar to what could be expected from mailing the return.

• The refund may be reduced based on potential disqualification of the dependent.

• Imperfect return processing takes approximately 4 – 6 weeks from the return’s acceptance date.

• If any calculations are changed as a result of processing the imperfect return, the taxpayer (or legal representative) will receive a math error notice from the IRS.

• Choosing the Imperfect Return Election may also affect the bank products for which the taxpayer is eligible.