What if the IRS rejects the e-filed return?
registered Electronic Return Originator (ERO, e.g. tax practitioner) must take reasonable steps to inform the organization of the rejection within 24 hours. When the ERO advises the organization that the return/extension has not been accepted, the ERO must provide the organization with the Business Rule explanation. If the electronic return/extension cannot be accepted for processing, the organization must file a paper return. In order to be filed timely, the paper return must be filed by the later of the due date of the return or five calendar days after the date the Service gives notification the return is rejected. The paper return should include an explanation of why the return is being filed after the due date and include a copy of the reject notification. No paper extension will be accepted after the due date of the return for which the extension was requested.
