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IRS rejection of trust returns

  • 1.  IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 03-21-2022 12:11 PM
    Anyone else having trust returns being kicked back by for the name not matching. I have had five so far.

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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY
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  • 2.  RE: IRS rejection of trust returns

    Silver Most Valuable Member
    Posted 03-22-2022 02:34 AM
    Yes.  I did the other day.  Ultra Tax assured me the rejection was from the IRS end, not theirs.  I had used the same family name on the trust for 10 years.  They said to call the IRS, which is a joke.  I took a shot and changed the family name to the most logical name and re-filed the return.  Lo and behold, it worked.  That was the only one like that to date.

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    Larry Prosky CPA
    Prosky & Rosenfeld LLP
    1025 Old Country Road
    Suite 403W
    Westbury, NY 11590
    (516) 873-9600 X1
    (516) 661-6020
    ------------------------------

    Original Message


  • 3.  RE: IRS rejection of trust returns

    Posted 03-22-2022 06:54 AM
    I think they are looking for the four digit code on page two of the EIN letter

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    Richard Terris
    LEON D. ALPERN & COMPANY, CPAs
    Woodbury NY
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    Original Message


  • 4.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 03-22-2022 07:25 AM
    Bob - Earlier in tax season I had this happen often.   I spoke to the efile resolution unit and they let me know the following:  In past years, the IRS has let tax returns with incorrect Name Controls to go through.   The returns would be flagged internally by the IRS, they would correct the Name Control internally, and then process the return.   They made a decision this year to no longer do that and 100% of the time, efiled returns with incorrect Name Controls would be rejected.   Given the unique nature of trust names, the Name Control is often not determined correctly by tax softwares and must be manually inputted.

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    Mark Stewart CPA
    FELDSTEIN & STEWART, LLP CPAs
    New City NY
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    Original Message


  • 5.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 03-22-2022 07:31 AM
    Mark:

    I actually changed the name to the names the trustee had on IRS estimated tax vouchers. I prayed, I begged, and almost smashed my NcCPAp thermos.

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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY
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    Original Message


  • 6.  RE: IRS rejection of trust returns

    Posted 03-22-2022 08:18 AM

    Yes, we had the same issues. The issue was the name control which is assigned when the IRS issues the EIN and is on the SS4.  For some reason our software, (Lacerte), had an incorrect name control that was auto populated in that field and we had to change them. It should generally be the first 4 letters in the name.  Although returns were accepted for years, I assume this year the IRS decided to use that field and match to their records. 

     

    Best regards,

     

    Lori Di Marco, CPA

     

    Lori Di Marco, CPA, PLLC

     

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    Original Message


  • 7.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 03-22-2022 08:22 AM
    Thank you all for your insight. The last name was two words. I made it one word and they all went through.

    Peace be with you all!

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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY
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    Original Message


  • 8.  RE: IRS rejection of trust returns

    Bronze Most Valuable Member
    Posted 03-22-2022 08:59 AM
    Yes, I had 3 out of a family of 5 complex trusts kicked back.  The issue had to do with a name control identifier in the efile packet.  There are specific rules to correlate a trust name with four digit name control.  You should  be able to change the name control identifier in your software.  I did that for my 3 rejects and then all was good.

    Here is some information how it works:


    Good luck!







    Original Message


  • 9.  RE: IRS rejection of trust returns

    Posted 03-22-2022 09:12 AM
    I followed the rules and contacted the IRS for guidance on how to resolve the name issue. I was told listen  just review and  don't ask questions focus on the first four letters of the name ?? Either the first name of the entity or the last and then call your software provider for instructions on how to access the name file the IRS is accessing and adjust. No luck with either the IRS or the software provider. Looks like paper filing in my only option at this point. Does anyone else have a way to resolve this issue.

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    Helen Silva
    CPA
    Quogue NY
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    Original Message


  • 10.  RE: IRS rejection of trust returns

    Bronze Most Valuable Member
    Posted 03-22-2022 09:19 AM
    What software provider are you using? 

    As to what the name control indicator should be, look at this UltraTax Guide, which parallels the IRS Pub, to understand how to come up with the name control.

    https://cs.thomsonreuters.com/ua/ut/cs_us_en/fus/elf/elf-name-control.htm

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    Steven M. Kaplan, CPA/ABV
    333 Westchester Ave Suite S302
    White Plains, NY 10604
    914-733-7340
    skaplan@skaplancpa.com
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    Original Message


  • 11.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 03-22-2022 09:30 AM
    Steve:

    It is Ultratax. Look back at Mark Stewart's comments. 

    The taxpayer's name is Van XXXX, and they have it as VANXXXX. Never happened before.

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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY
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    Original Message


  • 12.  RE: IRS rejection of trust returns

    Posted 03-22-2022 10:32 AM
    Hi Robert

    Did you ever think that you would be having these e mail back and forths on March 22 ?

    Which accounting course was this covered in ?

    Rich

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    Richard Terris
    LEON D. ALPERN & COMPANY, CPAs
    Woodbury NY
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    Original Message


  • 13.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 03-22-2022 10:41 AM
    Rich:

    I'm selling you my practice.

    Honestly, I never thought I would have such a low percentage of work out the door, at this point.

    The scotch looks tempting, but I am avoiding during the week!

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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY
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    Original Message


  • 14.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 03-22-2022 10:38 AM
      |   view attached
    does eveyone know that this information is included on the Original SS$ form if you have it...

    i am uploading  Pg 2  of that letter.

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    Abby Alhante
    KURCIAS & ALHANTE, CPAs LLC
    Melville NY
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    Attachment(s)

    pdf
    Trust Name Control.pdf   862 KB 1 version
    Original Message


  • 15.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 03-22-2022 10:43 AM
    Abby:

    We know about the CP 575. Unfortunately, these clients did not have them.


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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY
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    Original Message


  • 16.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 04-08-2022 11:08 AM
    More lost and wasted time.

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    Michael Rubinstein
    Michael D. Rubinstein CPA, PC
    North Bellmore NY
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    Original Message


  • 17.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 04-08-2022 11:49 AM
    I had the name correct according to the CP 575. Now I'm on hold for 30-60 minutes (I'll probably get disconnected).  This is the 5th year that I'm filing this return.
    I can only believe next week will be wonderful because i have to file about 10 more returns.

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    Michael Rubinstein
    Michael D. Rubinstein CPA, PC
    North Bellmore NY
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    Original Message


  • 18.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 04-08-2022 12:23 PM
    The first four letter of the name are LILA and the CP 575 Had the name at the top as LILA. 44 minutes and holding  :)

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    Michael Rubinstein
    Michael D. Rubinstein CPA, PC
    North Bellmore NY
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    Original Message


  • 19.  RE: IRS rejection of trust returns

    Platinum Most Valuable Member
    Posted 04-08-2022 12:55 PM

    Mike

     

     

    I am having the same problems    and   Lacerte is telling me that they are inundated with calls on the issue.

     

    Consider paper filing an extension until this is resolved.

     

     

    Btw...   it's been a while.... I really hope you are well...

     

     

     

    Abby

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Ext  2   Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     

     




    Original Message


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