Instead of entering the PIN in the box provided, go to the "file a return" option at the top of the page, go thru the process of submitting the return again, and when you get to the electronic signature section, "EDIT" the pin and put the new pin in.....then resubmit it. Then it takes 24-48 hours to be accepted or rejected. BUT at least it's not rejecting it immediately. Also, it may take a while for the new PIN to update in the system for turbotax to recognize it.
There are two different places to enter your PIN in the program. If you are using the same PIN as your 2009 return there is one option. If you are using a new PIN from the IRS that you just received there is another option. I've attached a screenshot showing the two different selections possible.
You have your PIN from last year? In the screen shot for Taxpayer "Joe" we know is PIN from the prior year 2009 so we selected "We know Joe's 2009 e-filing PIN" and entered the Prior Year PIN there. This is only if you know the PIN you used successfully on your 2009 return.
You just got a New PIN from the IRS (website or calling in)? For the Taxpayer "Susie" we don't know her 2009 PIN, but did just get one from the IRS website, so we select "We don't know Susie's 2009 e-filing PIN and need a new one." This is only if you lost or never had a PIN for 2009 and you just got a New PIN from the IRS website or by calling in.
I made the mistake of entering my PIN under the line: "I know my last years PIN" and entered it. But it is a NEW PIN I got by calling the IRS #866-704-7388. And of course it rejected it. Then I entered it under the line: "I do not remember my 2009 PIN and will provide a new one". If you did the same thing, go to the "File a Return" tab at the top left of the page. Chose E-file. Go to "edit PIN". Change selection for "I know it" to "I will provide a new PIN". Then submit it again. So far, no reject for us.
When you get a new pin you need to click "back" a couple times and then select Re-File blue button below. Then on the screen where you select to E-File again, it will have an Edit button next to the options for 2009 AGI/PIN. Click EDIT and select I DONT KNOW 2009 PIN. Then it will let you enter the new 2010 PIN and you can resubmit. I am still waiting for acceptance but at least I got passed that error. Hope this helps.
Or, if you have previously received a new PIN, entered it in the correct box and still been rejected, try calling and speaking with someone at the IRS to confirm the automated system has given you the correct PIN. Call this number 1-800-829-1040, press 2, do not select 7, press 1 and then press 3, this will take you to an actual person.
After you open your return again: 1. Click on "Print & File," 2. Then choose "File a Return" 3. Follow the steps until you get to the screen "Review your Federal Filing Choices" http://screencast.com/t/zcVKpNLUdhc 4. Click "Edit" next to the row about "Identifying Information" 5. Follow the steps to choose to Enter AGI or PIN.