New CPA Issue: IRS advised to paper file because child's SSN is too new/fresh

This is a relatively common issue with newer SSNs for dependents. The IRS database that validates SSNs for e-filing doesn't update as quickly as the main SSN database. For a child born in December with a January-issued SSN, the lag time can be up to 8-10 weeks before it's recognized in the e-file system. If you paper file now, you're looking at approximately 6-8 weeks for processing (maybe longer with the current backlog). If you file an extension and wait to e-file, it might actually be faster in the long run. My recommendation would be to contact the IRS again and specifically ask if the SSN is now in their system (sometimes they can check). If not, I'd explain the situation to your clients and give them the option: paper file now or wait 3-4 weeks and try to e-file again. If they're financially dependent on that refund, paper filing might be the safer bet since we know e-filing might not work for a while.

I had this exact problem last year with a client who had twins in November! I spent hours on the phone with the IRS and ended up super frustrated. Then I found taxr.ai (https://taxr.ai) which saved me big time. I uploaded the rejection notice and the baby's SSN card (with sensitive info blacked out) and their system analyzed it all and gave me really specific guidance. Turns out there's actually a way to get a manual review for these situations, and they walked me through exactly what form to submit and how to word the explanation. The client got their refund within 3 weeks! Might be worth checking out since it's specifically designed for unusual document/transcript issues like this one. It's been a huge help for my small practice when dealing with these weird edge cases.

Just wanted to follow up about taxr.ai - I tried it for my LLC issue I mentioned and wow, it actually delivered. The system immediately identified that my EIN validation error was happening because the business name on my articles of organization had a hyphen but the IRS registration didn't. I was about to paper file everything but taxr.ai showed me how to submit an expedited name matching request directly to the e-file department (something I had no idea existed!). Got confirmation within 48 hours and was able to e-file successfully. Definitely worth checking out for these weird system issues with the IRS.

For anyone facing IRS help issues - if you really need to talk to a live person at the IRS about this SSN problem or anything else, try Claimyr (https://claimyr.com). I was super skeptical at first but they actually got me through to an IRS agent in about 20 minutes instead of waiting for hours. Check out their demo video if you're curious how it works: https://youtu.be/_kiP6q8DX5c I was trying for days to get through about a similar database mismatch issue (client's name change wasn't in the system). Claimyr connected me to an actual IRS rep who was able to tell me exactly when the update would hit their e-file system. Saved me from submitting a paper return that would have taken months to process.

I have to admit I was totally wrong about Claimyr. After posting my skeptical comment, I was desperate to resolve a similar SSN issue for a client and decided to try it as a last resort. Got connected to an IRS agent in about 37 minutes (which is LIGHT YEARS faster than my previous attempts). The agent confirmed that newly issued SSNs take 4-8 weeks to appear in the e-file validation database, but they gave me a direct fax number for a special processing unit that handles these cases. Just submitted the return with supporting documentation yesterday, so hoping for the best. Just wanted to come back and say it actually works. Not being paid to say this - just surprised it delivered after being so skeptical.

Another option worth considering - have you tried using the Non-Filers tool for just getting the dependent into the system? I had a similar issue last year and found that if the child is registered through that portal, it sometimes updates the database faster than waiting for the normal sync.

I'm having the same issue with a client's adopted child - SSN was issued in February and we're still getting the rejection. Did you end up paper filing or waiting? I'm trying to decide what to tell my clients about timeframes.

Just dealt with this exact scenario last month! Had a client with twins born in late November, SSNs issued in December. Same rejection code you got. What worked for us: I called the practitioner priority line (as Mason mentioned) and the rep actually walked me through a workaround. There's a specific form you can attach to a paper return called Form 8948 that expedites processing for SSN database mismatches. The key is writing "NEW DEPENDENT SSN - DATABASE MISMATCH" in red ink across the top of the first page. We paper filed with this approach and got the refund processed in just under 5 weeks, which was way faster than the 8-12 weeks they initially quoted. The rep also mentioned that February-March is actually prime time for these issues since so many December babies get their SSNs in January. One tip: make copies of everything and send via certified mail. The IRS has been losing a surprising number of paper returns lately, and you'll want that tracking confirmation.