Taxes: Electronic Filing Errors Blamed on Users
The problem seems to be with the PIN (Personal Identification Number) system which allows taxpayers to submit a completely paperless tax return. In order to use the PIN successfully, taxpayers must supply information from the prior year's tax return. The IRS claims that many taxpayers are not supplying this information, resulting in their electronically-filed tax returns being rejected.
Intuit, the maker of TurboTax, and H&R Block, owner of Kiplinger's TaxCut software, are reporting rejection rates of about 20% for people filing tax returns using these software programs.