Question

Error Codes 1099R-502-01, F2439-502, FW2-502, and FW2G-502 - Error on EIN Employer ID Number

Accepted Answer

If the IRS rejects an e-file because of an Employer Identification Number mismatch, you will receive rejection code FW2-502. Keep in mind this type of rejection does not automatically mean the EIN is wrong, but it doesn't agree with IRS records.

An invalid employer identification number can result from one of three scenarios:

The EIN you entered in the Federal W-2 section in TaxAct was taken from the state section of the Form W-2 you received.
The EIN you entered in the Federal W-2 section in TaxAct doesn't match the federal EIN on the Form W-2 you received.
The EIN you entered in the Federal W-2 section in TaxAct matches the federal EIN on the Form W-2 you received, but the employer listed the EIN incorrectly.

IMPORTANT: If the numbers match, you will need to contact your employer and/or the IRS to obtain the correct numbers. The IRS can be reached at 1-800-829-1040.

Steps

To verify and/or modify your EIN entry, see Entering in Program - Form W-2.

Once you've corrected this information, you can resubmit your return.

If your e-filed return is rejected with code 1099R-502-01, F2439-502, or FW2G-502, you will need to verify a different identification number. From within your return, click Federal and follow the appropriate steps below:

For code 1099R-502-01, click Retirement Plan Income to expand the category, then IRA, 401(k), and pension plan distributions (Form 1099-R). Click Review and continue to the screen titled Retirement Plan Income - Payer's Information and verify that the Payer's federal ID number correctly matches the number on your physical Form 1099-R.
For code F2439-502, click Investment Income to expand the category, then Undistributed Long-Term Capital Gains (Form 2439). Click Review and on the screen titled Form 2439 - Payer's Name verify that the RIC or REIT's ID number correctly matches the number on your physical Form 2439.
For code FW2G-502, click Other Income to expand the category, then Gambling winnings. Continue to the screen titled Gambling Winnings - Summary and click Review. On the screen titled Gambling Winnings - W-2G - Payer's Name verify that the Payer's identification number correctly matches the number on your physical Form W-2G.