Must an ERO provide an e-filer whose return has been rejected with an explanation of why the return was rejected?

The correct answer indicates that an ERO (Electronic Return Originator) is required to provide the reject code and an explanation to an e-filer within 24 hours of the rejection of their tax return. This requirement is in place to ensure that taxpayers are promptly informed about any issues affecting their e-filing, allowing them to address and correct those issues quickly.

Providing the reject code is crucial because it pinpoints the specific reason for the rejection, which can help the taxpayer understand the nature of any errors in their return. Therefore, not only is immediate communication important to maintain transparency and trust between the ERO and the taxpayer, but it also facilitates the re-submission process, as the taxpayer can more effectively correct any errors based on the provided information.

While various options suggest alternatives such as written explanations via certified mail or verbal notifications, those methods do not align with the timeliness and specificity required for effective communication following a rejection. The emphasis on providing a clear reject code ensures that e-filers can quickly resolve any issues, which enhances the efficiency of the electronic filing system.