I was recently being totally stymied by a FW2-502 error, 'causing my Fed tax returns to be auto-rejected. The error claimed that there was a mismatch between the EIN of a Financial Institution on my form (1099-R) and the name of that institution as recorded by the IRS. I tried calling TurboTax; they never answered the phone. I called the IRS, spoke to someone for 2 minutes (before getting transferred and then immediately hung up on), who advised calling the Financial Institution. The Financial Institution assured me that the EIN was correct, as was their name as listed with the IRS (they are a very large institution), and all the info I had on my form matched the 1099-R I was sent. I tried fixing names and EINs (which were listed as the source of the error) multiple times, and was rejected by the IRS 7 times in a row.
It turned out, however, that I *did* have an error on my form, but it had nothing to do with the EIN or name not matching in the IRS data base. Way at the end of the 1099-R was Box 15, asking for a state ID number. I had typed the EIN of the institution into the state ID number, as on my 1099-R form, it said:
(15): State ID Number: [xxxxxxEIN] 5
So that is what I typed into box 15 on the 1099-R in TurboTax. But at some point, I wiped everything out and started over, uploading from the PDF, and discovered that the actual state ID number was just the 5 in that sequence. And when I redid all the 1099-R's in my return with a state ID number of 5, the return was accepted inside of 10 minutes.
The issue was *never* the EIN and institution name did not match the IRS database, as per the error report from TurboTax and the IRS rejection notice. The issue was that I had the wrong number in the State ID number box on my 1099-R (as the result of copying the number on my form listed next to that box, apparently like an idiot).
