In the world of tax filings, encountering IRS reject codes can be both perplexing and frustrating. Today, we delve into one such code that often leaves taxpayers scratching their heads: Reject Code IND-032-04. This unique code, IND-032-04, signifies a specific issue related to Individual Taxpayer Identification Numbers (ITINs) and is a topic of concern we’ll discuss in detail.
When you file your taxes electronically, the IRS employs a series of validation checks to ensure the accuracy and completeness of your return. If your submission triggers an error, the IRS assigns a reject code to pinpoint the problem. IND-032-04 refers to issues related to ITINs. Understanding this code and its underlying causes is crucial for taxpayers looking to rectify their return swiftly.
In the following discussion, we will discuss the common triggers of Reject Code IND-032-04, the steps to resolve it, and offer measures to prevent this error in your future tax filings. So, let’s understand the IRS reject code and streamline your tax filing process.
Table of Content
- 1 What is Reject Code IND-032-04?
- 2 Causes of Reject Code IND-032-04
- 3 How to Resolve Reject Code IND-032-04
- 4 Conclusion
- 5 Frequently Asked Questions
- 5.1 What happens if I don’t file a tax return with the IRS last year?
- 5.2 What should I use as the original AGI if my filing status changed from last year?
- 5.3 What AGI or PIN should I use if I filed jointly with a different spouse last year?
- 5.4 I imported my info from last year, so why is my AGI incorrect?
What is Reject Code IND-032-04?
Reject Code IND-032-04 is a distinctive identifier within the IRS reject code system, signifying a specific issue that warrants careful attention during the electronic tax filing process. In technical terms, this rejection indicates a discrepancy related to the Prior year’s spouse’s Personal Identification Number (PIN) or the Prior year’s Adjusted Gross Income (AGI) for the spouse, which is entered in the Electronic Filing folder’s PIN screen. This data, when cross-checked against the IRS database, does not align as expected, prompting the system to trigger Rule IND-032 for the taxpayer.
In simpler terms, this IRS reject code, IND-032-04, arises when the information provided about the prior year’s spouse, such as their PIN or AGI, doesn’t match the records held by the IRS. This mismatch raises a red flag during the validation process, necessitating corrective action to ensure the accuracy of the tax return.
Causes of Reject Code IND-032-04
- Providing inaccurate or mismatched data for the spouse’s prior year AGI or PIN.
- If the IRS hasn’t completed processing the prior year’s return due to delays, leading to a mismatch of information.
- Using the Non-Filers tool for registering Economic Impact Payments, which might require entering “$1” as the prior year AGI.
- Changes in filing status, particularly from joint filing to separate, might cause a disconnect in the AGI information.
- When the spouse didn’t file a tax return in the previous year, necessitating an entry of zero in the AGI area.
- If the spouse’s return wasn’t processed by the early part of December, entering a zero in the AGI area might be needed.
- Not having access to last year’s AGI or signature PIN for the spouse could lead to this issue.
- Mistakes while transferring data from the previous year’s return or other documents.
- Technical issues within tax preparation software that result in incorrect data transmission.
- Simple mistakes in data entry or misunderstanding of the requirements for entering spouse-related information.
How to Resolve Reject Code IND-032-04
You’ll need to update the information you provided for your spouse in Step 2, Section 3, which is all about verifying your identity. If you happen to have a copy of last year’s tax return, that’s a handy reference for making sure you enter the correct details.
However, there’s a twist to be aware of. Sometimes, your prior year’s information might not have been fully processed by the IRS yet due to some delays. In such cases, entering a simple zero ($0) as your spouse’s prior year Adjusted Gross Income (AGI) could solve the problem.
Now, if you used the Non-Filers tool last year to register for an Economic Impact Payment and you’re not typically required to file a tax return, just enter “$1” as your spouse’s prior year AGI. Check out the details on claiming the Recovery Rebate Credit if this applies to you.
But, if your rejection isn’t due to processing delays, here’s what you should do:
- Enter the exact AGI from your spouse’s last year’s originally filed return.
- If your spouse didn’t file a return last year, put a zero in the AGI area.
- If your spouse’s return from last year wasn’t processed by early December, again, enter a zero for the AGI.
If you don’t know the AGI or signature PIN from last year for your spouse, and you’re sure of the details but still facing rejection, you might have to go old school and file a paper return. You can find the mailing addresses you need in the Form 1040 instructions.
One more thing, if you’re making a payment, don’t forget to adjust the date in Step 2, Section 5 accordingly.
Remember, we can’t help you determine what the IRS has on file for your spouse’s AGI or PIN, so it’s crucial to get these details right when you resubmit.
Tips to Adjusted Gross Income (AGI) When Dealing with IRS Reject Codes
- If you can’t find last year’s return, you can easily obtain your AGI from a free IRS transcript. Online transcripts are available instantly, while mailed ones take about 5-10 days. Look for the “Adjusted Gross Income” line on your transcript.
- Avoid trying to “calculate” your AGI based on your W-2s or 1099s; this can lead to inaccuracies.
- If you made amendments to your previous year’s return, don’t use the AGI from the amended return. Always refer to the AGI from your initial filing, even if it was technically incorrect (e.g., if you missed reporting a W-2).
- If you mailed your return and it wasn’t processed by December 10, 2022, enter “0” as your AGI for 2021.
- If someone claimed you as a dependent last year, enter the AGI from your return, not theirs.
- For those who filed jointly last year but separately this year (including recently widowed or divorced individuals), use the AGI from last year’s joint return.
- If you’re filing jointly this year but selected “married filing separately” last year or you’re a newlywed couple, enter each spouse’s individual AGIs from the previous year.
- If you’re a first-time filer over the age of 16, simply enter “0” as your AGI.
Also learn about IRS Reject Code IND-507
In conclusion, dealing with IRS reject code IND-032-04 can be a challenging aspect of tax filing. However, it’s crucial to understand that this code primarily revolves around issues related to prior year spouse information, particularly their AGI and PIN. Resolving this rejection necessitates meticulous data entry and, in some cases, patience due to processing delays. If you find yourself still grappling with IND-032-04 or require expert guidance tailored to your specific situation, don’t hesitate to reach out to our team of tax professionals. They’re here to provide the assistance you need to successfully navigate this tax-related hurdle. Your financial peace of mind is our priority.
Frequently Asked Questions
What happens if I don’t file a tax return with the IRS last year?
If you haven’t filed your taxes before or if you used an Individual Taxpayer Identification Number (ITIN) last year and now have a Social Security Number (SSN), you’ll need to make a choice on the E-Filing screen called “Prior Year Information.” Here are your options:
1. I am a first-time filer: Choose this if you’ve never filed taxes before.
2. I did NOT file a tax return: Select this if you didn’t file a tax return in the previous year.
For those who are married and only one spouse filed a tax return, you should provide the Adjusted Gross Income (AGI) from the prior year for the spouse who filed, and enter zero (0) for the spouse who didn’t file last year.
If your AGI was zero, then simply use 0 (zero) as your AGI when you e-file your current taxes.
What should I use as the original AGI if my filing status changed from last year?
If your filing status has changed from the previous year to “Married Filing Jointly,” here’s what to do:
1. If you and your spouse are now filing jointly but each of you filed separately in the prior year, you should use your individual original AGI from your respective tax returns of the previous year.
2. If the change is from “Married Filing Jointly” to the same status again, then both of you should use the same original AGI from last year’s joint tax return.
What AGI or PIN should I use if I filed jointly with a different spouse last year?
If you filed your taxes jointly with a different spouse in the previous year, you’ll need to use the total AGI amount from the joint tax return that you filed with your ex-spouse.
I imported my info from last year, so why is my AGI incorrect?
Well, sometimes, your AGI might not match up if you made changes to your tax return after you filed it last year but before you imported it this year. If that’s what happened to you, don’t worry. Here’s what you should do:
1. Get the right AGI number from your 2017 tax return that you saved when you e-filed last year.
2. Then, just put that correct amount into your 2018 tax return where it asks for the prior-year AGI.
This should help make sure your AGI is accurate for this year’s filing.