Imperfect Returns in ProWeb
If a federal tax return is rejected for a dependent SSN/Name Control mismatch, the return can be re-transmitted and accepted by the IRS if the Imperfect Return Election is made. This election can only be made if the original return rejected with reject code SEIC-F1040-501-02 or R0000-504-02. Returns transmitted with the Imperfect Return Election will be acknowledged by the IRS with the acknowledgement code E (Exception).
Before re-transmitting a return with the Imperfect Return Election, we recommend working with the taxpayer to ensure that the correct dependent name and SSN have been entered on the tax return. Taxpayers can visit any Social Security Office and receive a printout of this information. The IRS will review any tax return transmitted with the Imperfect Return Election to verify the accuracy of the dependent information contained in the file. This review process will cause a delay in the processing of the return and any refund will typically be processed in 4-6 weeks after acceptance. If the IRS cannot verify the dependent data, the taxpayer may be disqualified from claiming the dependent and any refund may be reduced.
After a return is rejected for SSN/Name Control mismatch, the Imperfect Return Election option will appear under Federal Return Type on the e-file page of the return.
When the Imperfect Return Indication is made, the tax payer is not longer eligible for bank products. It is important to collect your fees before e-filing returns under this exception.
NOTE: The IRS will send a notice to the taxpayer advising them of any changes made as a result of the Imperfect Return Election. Ensure that changes made by the IRS due to the election are corrected in the taxpayer’s tax return so that the proper dependent information pulls forward next year.