What Does the Imperfect Return Election Do?

Federal tax returns rejected because of dependent SSN/Name Control mismatch can be retransmitted and the IRS will accept them when you make an Imperfect Return Election. There are various returns with different reject codes. However, only those with specific codes have the Election option on them. These are returns with reject codes SEIC-F1040-501-02 or R0000-504-02. The acknowledgement code E(Exception) is used by the IRS to acknowledge returns with the Imperfect Return Election.

We recommend that before retransmitting a return, collaborate with your taxpayer to ensure that you enter the correct SSN and dependent name on the tax return. To receive a print out of  this information, the taxpayer can pay a visit to any Social Security Office. All the tax returns transmitted alongside the Imperfect Return Election are reviewed by the IRS to ensure that the information transmitted is accurate. The processing of the return is delayed by the review process and as a result, it takes 4-6 weeks after acceptance to process any refund. The taxpayer may be barred from laying claim on the dependent and any refund may be reduced should the IRS be unable to verify the dependent data. 

The Imperfect Return Election option appears under Federal Return Type after a return is turned down for SSN/Name Control mismatch. The Federal Return Type is found on the e-file page of the return. 

A taxpayer is made ineligible for bank products the moment they make the Imperfect Return Indicator. Under this exception, ensure that before e-filing returns, collect your fees.