Hey Guys,
Just thought I would post this because I tried to search online and every source said to paper file because the IRS takes a long time to update their SSN database. This is not true.
My Spouse (beneficiary) applied for her SSN on 04/29/2021 and on 05/04/2021, we received her SSN card. I immediately tried to E-file but the efile kept getting rejected because the Last Name or SSN of my Spouse did not match the IRS records. I checked with tax professionals and was told to file by mail with a copy of her SSN Card. I decided to wait and called SSA to verify her name and information. They confirmed that her information is correct and told me that SSA send IRS updated records every 8 to 10 days so to wait.
This morning, I decided to resubmit the returns online and they were both finally accepted.
So to everyone with newly issued SSN Cards and being rejected when efiling due to last name or SSN mismatch: All you have to do is wait another week and your records should be transferred to IRS. Be sure to call SSA to make sure they have the name and DOB correct as well.
Good luck.