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IRS Reject Codes - Employer's or Payer's ID Number
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See the instructions below if you received one of the following IRS rejection codes:

  • FW2-502
  • 1099R-502-02
  • F2439-502-01
  • FW2G-502

Understanding reject code FW2-502:

If your return is rejected with IRS error code FW2-502, the Employer Identification Number (EIN) you entered for a Form W-2 does not match the number in the IRS Masterfile.

An EIN is 9 digits in length with the format of XX-XXXXXXX. 

An invalid employer identification number usually results when the number you entered in the federal EIN section of your TaxAct® W-2:

  1. was taken from the state section of your physical W2,
  2. doesn't match the federal EIN on your physical W2, or
  3. matches the federal EIN on your physical W2, but is incorrect (i.e. the number provided on your W-2 is wrong).

Make corrections in the software if the numbers don’t match. If the numbers do match, contact your employer or the IRS (1-800-829-1040) to get the correct numbers.

To verify or modify your EIN, see Form W-2 - Adding, Reviewing, or Deleting.

Once you've corrected this information, click Filing, update your information, and repeat the electronic filing steps.

Understanding reject codes 1099R-502-02, F2439-502-01, and FW2G-502:

If your e-filed return is rejected with code 1099R-502-02, F2439-502-01, or FW2G-502, you’ll need to verify a different identification number. From within your return, follow the appropriate steps below.

  • For code 1099R-502-02:

    • Click Federal.
    • Click Retirement Plan Income to expand the category, then IRA, 401(k), and pension plan distributions (Form 1099-R). Click Review to review a form you previously created, then select Step-by-Step Guidance. On the screen titled Retirement Plan Income - Payer's Information verify that the Payer's federal ID number correctly matches the number on your physical Form 1099-R.

  • For code F2439-502-01:

    • Click Federal.
    • Click Investment Income to expand the category, then Undistributed Long-Term Capital Gains (Form 2439).
    • Click Review to review a form you previously created.
    • 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 Federal.
    • Click Other Income to expand the category, then Gambling winnings.
    • On the screen titled Gambling Winnings - W-2G - Payer's Information, verify that the Payer's identification number correctly matches the number on your physical Form W-2G.

Once you have corrected the information, click Filing to repeat the electronic filing steps.