S Corp Efile Rejection

Forum|Forum|1 year ago
January 23, 2025
1 reply
24 views

I have an existing client who became a S Corporation in 2023. Efile return and everything was fine in 2023, tried to Efile the 2024 tax return and it is being rejected. Error R0000-900-01 saying the EIN number does not match the return type established with the IRS.

Any ideas??

Thank you

ProSeries Professional

This topic has been closed for replies.

abctax55

Level 15

Call the number on the reject notice. They might be able to provide some info. You will need the letter your client received from the IRS, approving the S election.

Hopefully, that letter exists. I have one that the attorney faxed the election to the IRS, but the approval seems to be MIA. I have another one that the attorney never filed the election, and is just now saying 'hey, it wasn't our responsibility'.

On both of them, the 2022 returns went thru as efiled, but the 2023 returns were rejected. One just got a notice from the IRS that 'oops' the 2022 return really shouldn't have been a 1120-S.

I would bet your client is in the same situation.

It's a mess.

HumanKind... Be Both

rbynaker

Level 13

I've seen multiple posts on just about every tax forum I'm on about these S Corp messes. I believe there is a systemic problem in the S Corp unit and recommend folks contact their Stakeholder Liaison to make them aware of the problems they are having. The 2553s are not always getting into the system and it seems to be taking YEARS along with multiple back-and-forth contact with the IRS to get this resolved. If we all scream loud enough in the same direction . . .

I'm in the middle of an IRS webinar right now about the online accounts. Sounds like you can log in to a Corp business tax account to retrieve the S Corp approval letter (of course, if the 2553 never got processed, nothing's going to be there!)

Rick

abctax55

Level 15

Thanks Rick....

One I have just found out was NEVER filed as the attorney dropped to ball. Guess we will be asking for retroactive approval. JUST what I want to be dealing with as filing season starts.

The other one... I suspect is caught up in the back/forth mess as the attorney does have proof of the faxing of the F 2553

HumanKind... Be Both

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