ACA Filing Tips: What Does this IRS Error Mean?

What does this IRS Error mean? ACA filing

It’s once again ACA filing season!

HR and benefits professionals know that when preparing to transmit forms to the IRS – through the IRS ACA Information Return (AIR) System or through a technology vendor – it’s important to understand common IRS transmission error messages, plus what they mean to help remedy the problem. A better understanding of the errors and what can cause them may make the filing process go more smoothly. Some common errors can be prevented prior to submitting a test send or attempting to file.

Experienced filers may notice there are some differences in the way the IRS is displaying and providing error results. To help you prepare, the Equifax ACA team has compiled an updated list of (4) common IRS errors and what triggers them:

1. IRS Error: Business Rule Text: Form 1095C ‘CoveredIndividualName’ and ‘SSN’ in ‘CoveredIndividualGrp’ must match the IRS database.

What does it mean? The SSN and Name of your Employee must match what the IRS has within their database.

2. IRS Error: If Form 1095C ‘SSN’ in ‘CoveredIndividualGrp’ has a value, then ‘CoveredIndividualName’ in ‘CoveredIndividualGrp’ must have a value.

What does it mean? If you populate an SSN for a Dependent or Spouse in Part III of the 1095-C, you must also include the covered individuals name.

3. IRS Error: Form 1094C, ‘BusinessName’ and ‘EmployerEIN’ in ‘EmployerInformationGrp’ must match the IRS database.

What does it mean? The Employer Name and Employer EIN that is provided on the 1094-C must match with what the IRS has within their system. If it does not, your 1094-C will be rejected.

4. IRS Error: If Form 1094C checkbox ‘Section4980HReliefInd’ is not checked then ‘ALESect4980HTrnstReliefCd’ must not have a value.

What does it mean? If you do not indicate that you wish to utilize 4980H Relief which is located on line 22, Box C of the 1094-C, you should not populate a value for the Relief code located in column (e).

Does your organization need support with ACA filing for tax year 2016 or prior years? Remember, it’s better to file late than to not file at all! The Equifax ACA team is here to help. Please contact us at ACAcompliance@equifax.com to learn more.