If you were married, divorced, or changed your name for any reason during the past year, you must change your name before preparing next year’s tax return. The IRS automatically conducts a name match on the first few letters of your last name. So, here are some tips on how to avoid name mismatch audits.

Issues with name changes

If the name on your tax return does not match the name on file with the Social Security Administration for your Social Security number, here’s what could happen:

• Your tax return might be rejected when you try to e-file
• The IRS automatically accepts your income as taxable but then disallows any deductions
• You may receive a notice from the IRS with taxes owed and underpayment penalties

Avoid name mismatch audits

1. Before filing your tax return, go to www.ssa.gov, follow the instructions for changing your name, and file it as soon as possible.
2. Also, notify your employer. Double-check the W-2 you receive to ensure your name is correct. If the change is on your W-2, you must ensure it updates with the Social Security Administration too.
3. If you are planning a significant financial transaction soon, you may wish to adjust the timing of the transaction or the timing of your name change to avoid complications.
4. Remember to also change your name on other important documents, such as auto titles, driver’s licenses, property titles, bank accounts, loan agreements, beneficiary documents, and other accounts.

If you cannot make the name change on time, use the name on file at the Social Security Administration AND with your employer when filing your taxes to avoid the automatic notification of a name mismatch.

The Social Security Administration’s website walks you through the name change process. Please note that this process is not as simple as it was in the past. You must now provide proof of citizenship and submit documents showing the original and new names. Spend some time going over the name change process and plan accordingly. Contact our RRBB advisors if you have any questions or need further assistance.