IRS AIR Program ERROR late filing and correction of data e-filing etc.  is not as straightforward as one would assume.  The following information has been prepared to help you understand what to do about Corrections. You can download the information here.Information on Corrections in Knowledgebase Ver .95.pdf

Latest IRS guidance on Penalties

Filers that miss the June 30, 2016 due date will not generally be assessed late filing penalties under section 6721 if the reporting entity has made legitimate efforts to register with the AIR system and to file its information returns, and it continues to make such efforts and completes the process as soon as possible."   Read the actual Quick Alert here: https://www.benefitscape.com/Portals/1/Documents/Late%20Filing%20Suggested.pdf

 There is also a 46 minute Video, with a transcript, provided by the IRS.

http://www.irsvideos.gov/Governments/AffordableCareAct/AffordableCareActInformationReturnsCorrectionsProcess

 here are charts on pages 4-5 of the instructions for Forms 1094-C and 1095-C https://www.irs.gov/instructions/i109495c/ar01.htmland page 5 of the instructions for Forms 1094-B and 1095-B, that list examples of errors that need to be corrected and how to correct them. Below are the instructions for Form 1095C.

Original Form 1095-C Submitted to IRS and Furnished to Employee
IFany of the following are incorrect ....	THEN...
1. Name, SSN, Employer EIN 2. Offer of Coverage 3. Premium Amount 4. Safe Harbor and Other Relief Codes 5. Covered Individuals Information	1. Prepare a new Form 1095-C 2. Enter an “X” in the “CORRECTED” box at the top of the form 3. Submit corrected Form 1095-Cs with a non-authoritative Form 1094-C transmittal to the IRS 4. Furnish a corrected Form 1095-C to the employee

 

 

 

 

The IRS AIR System enables Third Party E-filers...So there is no need to go through the IRS AIR Application and Testing Process to become a software developer, transmitter, or issuer (company) that is filing your own returns! 

The IRS points out that "if you are an issuer using a third party and you are not transmitting information returns directly to the IRS, you should not apply for a TCC."  This should come as quite a relief to many companies that had difficulty getting their own Transmitter Control Code (TCC).

As a Transmitter, having sent thousands of XML files to the IRS AIR; we are prepared to help you today.

You have prepared the Form 1095's and now you need to send this data to the IRS.

No matter what the format of your Form 1095 information, the BenefitScape VAN can load, translate and transmit for you!

Affordable Care Act Information Returns (AIR) Program requires an XML format for electronic submission.

BenefitScape has been working on HRXML solutions for years and is prepared for this challenge, offering a cloud-based Value-Added Network (VAN): a software based service that acts as an intermediary between our clients and the new IRS AIR platform.

Employers have been using VANs for complex data transmission, like ANSI 834, in the Healthcare arena for decades.

Now, a VAN is available for IRS ACA e-Filing.

 

You may not be able to check that  BOX…just yet!

Now that the 1095 Forms are in employee hands the inevitable corrections are appearing.  It may be tempting to check the “Corrected Box” but don’t do it!..unless you have already filed the 1095 report with the IRS.   Instead enter “ CORRECTED” on the form and redistribute it..  The IRS instructions are  “Enter an “X” in the corrected checkbox only when correcting a Form 1095-C previously filed with the IRS. If you are correcting a Form 1095-C that was previously furnished to a recipient, but not filed with the IRS, write CORRECTED on the new Form 1095-C furnished to the recipient.”

Its not over until its over   Also don’t forget that e-filing to the new AIR System is not a one and done process. It can be ongoing, which complicates the correction process, since all forms may not be filed at once.  

Error Code AIRTN500 – TIN Validation Failed. 
•     This means an Individual Name and Social Security Number does not match 
IRS database. The Error Data File will only identify the “UniqueRecordID in 
the submission that has a TIN Validation Error and not the specific Name or 
SSN of the Individual that caused the error. 

In a word: "e-Filing".  While preparing the Form 1095-B/-C is complex, e-filing to IRS AIR is straightforward but it requires significant technical skills that most employers do not have.  This where our VAN comes into play.  Why remake the wheel for a one time annual filing?  Let us handle the data and e-filing for you!

First, the regulations and guidance are not crystal clear on how errors need to be corrected to avoid potential penalties? What is clear is that Penalty relief is provided if you did not file or furnish accurate returns but you can show you made a good-faith effort to comply with the requirements. Correcting errors is part of the good-faith effort to file accurate and complete information returns. Consequently, it needs to be done.

What causes TIN Validation Error AIRTN500?

One of the most common ACA e-filing errors that is returned from the IRS AIR system is TIN Validation Error AIRTN500.

This typically happens when the last name and SSN don’t match what the IRS has on file. This can happen for the following reasons:

• Maiden name used when married name is registered with the SSA (or vice-versa)
• Often times it is the result of a Last Name used where 2 last names are common. The first last name listed must be the one registered with the SSA.

If you are attempting IRS AATS, the testing Scenarios provided by the IRS are very detailed and straightforward.  Combined with the XML Schema, they provide all a technician needs to prepare the submissions successfully.  It also helps to have a pattern to follow. We are pleased to provide an XML sample for you; all it requires is that you Register with us to receive the download.  Your info is secure and we never sell or provide it to anyone. Contact Us  to make your request.

IRS Clarifies AATS Phase 2 Availability Dates

BenefitScape has completed all of the testing required and is providing an XML Sample for Scenario 1 (Form 1095-B, minus our specific credentials) for your examination.