How Are Tax Returns Processed by the IRS

Tax Returns

The tax returns filed with the Internal Revenue Service (IRS) need to undergo quite an extensive review process before they are finally accepted. While it is mandatory for each taxpayer to regularly file tax returns, not everyone is aware of what exactly happens once they submit their file. Keep reading to know how the IRS uses an amazing blend of man and machine to process tax returns.

Error Resolution Service

Firstly, the filed return goes through an error resolution service, which is designed to point out potential errors. If it finds an error, the return file is reviewed by an IRS employee manually to make sure it is a mistake and not due to a software issue. If a genuine error is spotted, the IRS representative corrects it using the IRS’s “Math Error Authority” and sends an email to the taxpayer about the correction.

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Declined Returns

When the error spotted in a return filed by a taxpayer cannot be corrected under the IRS’s “Math Error Authority”, it is rejected. This mainly occurs due to reasons like missing forms or incomplete information. The taxpayer is requested through a letter to send in the missing forms or information in 20 days. Failing to do so can result in an increase in the tax dues or a reduction in the amount refunded.

Potential Case Of Identity Theft

Before posting, the IRS sends every filed return through identity theft/fraud filters to validate the information provided in the forms. Any return tagged to be potentially fraudulent is sent for further examination to the Taxpayer Protection Program (TPP). Taxpayers are informed immediately with a letter sent by TPP that asks them for authentication of their identity through online mediums, phone, or by going to a Taxpayer Assistance Center (TAC).

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Non-Dispatchable Returns

Non-dispatchable returns refer to returns that can simply not be processed by the IRS. As electronically filed returns get immediately rejected in case of errors, non-dispatchable returns are usually the hardcopies submitted in paper. When a taxpayer’s name or identification number does not match with the information on the file from the Social Security Administration, the return is deemed non-dispatchable. A letter regarding the same is sent to the taxpayer and educates them about the best way to correct the error.


The IRS makes sure to go through all the documents submitted by taxpayers. You must stay up-to-date with your dues and returns, and if you ever need IRS tax help such as tax lien assistance, contact our team of proficient tax lien attorneys at the Law Offices of Nick Nemeth. Our team of experts not only provides effective tax lien assistance but help with a whole range of IRS tax issues. Fill out our Contact Form or reach out to us at (972) 426-2553 to book an appointment.

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