Dependent received IND-452 error, I received IND-517 error. Can no longer eFile. Next steps ?

[EBJX]

My college student e-filed first = rejected with IND-452 error (In an original return, the Primary SSN in the return header must not be the same as the TIN of a previously accepted electronic Individual return filed for the same tax period). The dependent did correctly select that someone else could claim him as a dependent and there were no other errors in the return. 

I e-filed next = rejected with IND-517 error (A Dependent SSN in the return must not be the same as the Primary or Spouse SSN on another return where 'PrimaryClaimAsDependentInd' or 'SpouseClaimAsDependentInd" is not checked). Doubled checked everything between both our submissions and both are correct. 

Resubmitted both again - but did in fact get the same error.

Then, the dependent created an IRS account to check there if something was submitted and upon logging in was asked to "validate a return" as one of the options on the home page. Upon selecting "No" to the prompt asking if a return had been filed,  was then informed that "Fraudulent Tax Filing Identified - IRS records indicate that a return has been filed using your identity." They also said, "The refund will not be issued and the IRS will ensure that steps are taken to protect your identity in the future."

NOTE: Since both were still in a state of rejection, opted to select "No" though it wasn't clear if they meant attempted to be filed or filed as in accepted. (I did not have a similar prompt on my side when I looked at my portal).

I've never had this issue before with his SSN in previous years - qualifies as a dependent still so there's no issue there. There is no way anyone in our family filed taxes for him prior to this year.

At this point, I assume we both have to file paper returns (unless I want to remove him from my return, which increases my tax bill, but would allow me to e-file) as someone has likely used his SSN fraudulently or accidentally in another return. (Though I'm not ruling out some kind of system error).

Another concern is if I change my return to a paper return - what happens to the tax payment I made before the deadline that is currently held on my credit card? Will that be applied against the paper return or will I need to pay again? I hope that I'm not seen as late as I filed on 4/18 and was given 5 days to fix the errors in order to eFile (but they now seem unfixable in the short term).

I know this is a unique one, and a lot of information, but is anyone else in a similar situation?

[rjs]

One of two things happened with your dependent student's tax return. One possibility is that someone filed a fraudulent tax return with his SSN. It could be someone in your family, even though you don't think so, or someone not in your family, possibly an identity thief who you don't even know. The other possibility is that he filed the earlier tax return himself, perhaps not having intended to file, and not even realizing that he did it. It sounds unlikely, but it does happen, especially with young people filing for the first time. A "system error" is very unlikely.

Since he told the IRS that he did not file the first tax return, they are now assuming that the first possibility is what happened, someone filed a fraudulent return with his SSN.

In any case, you and he must now both file by mail. You should mail your tax returns, in separate envelopes, by certified mail with a return receipt, so that you get tracking and confirmation of delivery. Your returns will probably be considered late, but there's nothing you can do about that now. If you get an IRS notice assessing penalties, you can request First Time Penalty Abatement.

It's not clear exactly how you made your payment, or what "held on my credit card" means. But if you made a payment for your 2022 tax return it will be applied to your tax, no matter how you file the return.

[EBJX]

Thanks for your reply, much appreciated. 100% he didn't apply w/o us - so sadly the most likely is someone else submitted using his SSN. Will begin the process to investigate w/IRS.

Also, appreciate the extra suggestion on how to file by mail - good ideas to make sure tracked, etc.

Re: the "Held Payment" - I made a payment when I eFiled on 4/18 but since my return was rejected, I wasn't sure if they were going to actually process the payment. It is still showing as an authorized pending transaction on my credit card but hasn't posted. I was expecting to see it posted by now as other transactions from that same day and later have all been posted.

I will have to change my filing status from eFiling to Mail and print the forms to mail in - maybe at that point, it will process (which would be good because the payment will have been posted on 4/18).