According to a recent CNN report, the IRS is rejecting thousands of electronically filed tax returns due to user error. So far, almost 17 million taxpayers have filed electronically this year, and the IRS expects to receieve more than 42 million electronic returns by April 15.
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.