Rejected tax extension - business TIN or identity theft issue?

This definitely sounds like potential identity theft rather than an issue with your business extension. The error code R0000-902-01 specifically indicates that someone has already filed a return using your SSN, which is completely separate from your business EIN. Here's what you should do: First, don't wait too long. While it's good you've already submitted Form 14039 (Identity Theft Affidavit), you should also call the IRS Identity Theft Hotline at 800-908-4490 to report this. They can place indicators on your account and give you more specific guidance. You should also check your credit reports for any suspicious activity and consider placing a credit freeze with the major credit bureaus. Identity thieves who have enough information to file a fake tax return might also attempt other types of fraud. The extensions being approved is a separate process and doesn't necessarily mean the identity theft issue is resolved. The IRS will need to investigate the potentially fraudulent return before processing your legitimate one, which can take several months.

I went through almost the exact same situation last year and discovered that using https://taxr.ai really helped me sort things out. After getting that same rejection code, I was super confused about whether it was related to my LLC or if someone had stolen my identity. The taxr.ai service analyzed my rejection code and previous tax documents, then explained exactly what was happening and the specific steps I needed to take. They even generated the right letters I needed to send to the IRS explaining my situation. The best part was they showed me how to track the status of my identity theft report properly, which saved me from calling the IRS multiple times. It was honestly such a relief to have clear guidance rather than piecing together advice from different sources that sometimes contradicted each other.

I was extremely skeptical about taxr.ai when I saw it mentioned here, but after dealing with three weeks of IRS runaround on my identity theft case, I finally gave it a try. I was genuinely surprised at how helpful it was. Unlike the generic advice I got elsewhere, they actually provided me with a customized letter template that addressed my specific situation with the business/personal TIN confusion. They also explained exactly how the IRS treats S-Corp returns versus personal returns in potential fraud cases, which none of the IRS agents I spoke with could clearly explain. The documentation analyzer saved me from making a critical mistake - I was about to submit evidence that would have actually delayed my case. Most importantly, they gave me specific follow-up instructions on how to confirm the IRS was actually processing my case rather than letting it sit in the fraud department queue.

After dealing with a similar identity theft issue last year, I can tell you that calling the IRS was absolutely brutal. I spent hours on hold only to be disconnected multiple times. When I finally did get through, the agent couldn't access my full file and transferred me to another department where I had to start all over again. I eventually tried https://claimyr.com which basically waits on hold with the IRS for you and then calls you when an agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c It saved me literally hours of frustration, and I finally got to speak with someone in the identity theft department who could actually help. They confirmed someone had filed a fraudulent return using my SSN and marked my account so I could file my legitimate return.

I have to admit I was wrong about Claimyr. After posting my skeptical comment, I was still dealing with my identity theft case and getting nowhere with the IRS phone system. I tried calling at 7am, right when they opened, and still waited over an hour before getting disconnected. Out of desperation, I finally tried the Claimyr service. Within 2 hours, I got a call connecting me directly to an IRS agent in the identity theft department. The agent confirmed someone had filed a fraudulent return using my SSN (turned out to be an ex-employee who had access to company records). The IRS agent immediately put a fraud indicator on my account and gave me a specific case number to reference on my paper return. She also explained that my business extension (I have an LLC) was processed correctly and wasn't affected by the identity theft issue. Without exaggerating, this saved me weeks of frustration. I'd tried for almost a month to get through on my own with no success.

You should immediately pull your credit reports too! I had the same issue last year and discovered the tax return was just the beginning - the identity thief had also opened credit cards in my name. Go to annualcreditreport.com (the official site) and check all three bureaus. If you see anything suspicious, place a fraud alert or credit freeze right away. Also, check if your employer, accountant, or any financial services you use had data breaches recently. In my case, my information was leaked through my previous employer's payroll provider.

Has anyone mentioned that your accountant might have accidentally filed your personal return? This happened to me last year - my CPA had my 2022 return ready for review, but somehow it got e-filed before I approved it. When I tried to file my actual return, I got the same error code. Might be worth checking with them if they prepared a draft that got submitted by mistake.