What must an ERO do with a rejected return after troubleshooting?

An Electronic Return Originator (ERO) has the responsibility to keep the taxpayer informed about the status of their tax return. After troubleshooting a rejected return, the ERO must notify the taxpayer and explain the reason for the rejection. This is crucial for several reasons:

1. Transparency: The taxpayer needs to understand why their return was rejected so they can take the necessary steps to correct any issues. This fosters trust and keeping the client well-informed is a key part of the ERO's service.

2. Client Engagement: By communicating directly with the taxpayer, the ERO allows them to be involved in the resolution of the issues, giving them an opportunity to ask questions or provide additional information that may be needed for resubmission.

3. Compliance: There are regulations and ethical standards that require EROs to keep their clients informed about their returns and any issues that may prevent successful e-filing. Thus, notifying the taxpayer is also a matter of adhering to best practices and regulatory compliance.

Other options revolve around actions that may not be suitable or compliant. For instance, re-submitting the return immediately without communicating with the taxpayer could lead to a lack of understanding of the problems, and sending it to the IRS without further action could result in unnecessary complications