Getting a rejection notice with an e-filed Form 2290 is frustrating and yet quite common. When the IRS system rejects a submission, that means the required stamped Schedule 1, your proof of payment, will be delayed. Fortunately, the most common rejection reasons are just simple data entry errors, which can be easily corrected and resubmitted.

Top Reasons for IRS Rejection

Validation against the IRS master database is highly strict. The following causes an immediate rejection:

• EIN/Name Mismatch: The most frequent rejection received is normally Error Code R0000-922. The EIN and the business name entered on the return should match exactly with what the IRS has in its database. Even minor discrepancies-like omission of a comma, "Inc." versus "Incorporated," or even an incorrect address-will result in a rejection.
• New EIN: The EIN, if obtained recently-less than 10-15 business days ago-is not yet fully active in the IRS e-file system, hence, there is a mismatch.
• Mistaken VIN: A single mistake in the 17-character VIN, a typographical error such as transposing letters or numbers, for example, mistaking 'O' with '0', or 'I' with '1'. The IRS would not be able to validate the tax paid with an invalid taxable vehicle.
• Duplicate Filing: This rejection occurs, with Error Code R0000-194, if the taxpayer tries to submit a new return for the same vehicle-VIN-for the same tax period and First Used Month. This is most often caused by a filer not knowing whether an initial filing went through and files again.
• Payment Detail Errors: EFW - errors in providing bank routing number or account number will mean that the payment cannot be processed, and in fact, the entire submission will be rejected if the taxpayer chose EFW.

The Next Step: Resolve and Resubmit

Once a rejection notice arrives, which usually comes via email from the e-file provider, immediate action is required to avoid IRS penalties beyond just obtaining the stamped Schedule 1 before the HVUT deadline.

Step 1: Understand the Rejection Code

This notice will indicate an IRS specific rejection code along with a description of the error (example: "R0000-922: Invalid EIN"). Utilize this code to determine which field in your application needs to be corrected.

Step 2: Correct the Error

Log back into your e-file platform and correct only the identified mistake:

• EIN/Name Mismatch: Check your legal business name and EIN against your IRS confirmation letter. If this is a new EIN, wait the requisite processing time, then try again.
• Incorrect VIN: Please re-verify the VIN with the vehicle's registration paper.

Step 3: Resubmit the Return

A majority of IRS-authorized e-file providers do not charge anything extra for correcting and re-transmitting a rejected return. Because the original HVUT deadline is still in effect, the faster you resubmit, the sooner your filing will be processed and proof of payment secured.

Note: For more information, visit IRS website