By far the most common error message received from the IRS on a given employee’s 1095-C form are the two in red above. In IRS speak, this means a social security number (SSN) that was specified on the 1095-C does not match what the IRS database has on file for the name provided. This could be for either:
- The employee themselves and/or (the second one in red above)
- An employee dependent (if part III of the 1095-C was populated) (the first one in red above)
The IRS does not indicate which data element may be in error (Name or SSN), it only says the combination doesn’t match. Therefore, you need to check both the spelling of the person’s or dependent’s name AND potentially the SSN.
Common reasons for mismatches are:
- Use of maiden name or married name in the system when IRS has something else on file
- Mis-typed information or bad data entry
- Employees using fraudulent SSN numbers (common for non-citizens)
As an employer you are expected to go to some reasonable measure of effort to secure the correct combination of SSN and Name for the forms. IRS publication 1586 generally outlines these efforts and guidelines for that. This document is somewhat intimidating and complex, but in general as long as the employer conducts 3 solicitations from the employee for correct information, (and in a given timeframe) then they will have met reasonable standards for attempting to get correct information. Yet there are situations where:
- Employer cannot obtain the correct information (non-compliance by employee or employee leaves)
- Employer has verified that the information is indeed correct, but IRS has stale information
In those cases there is nothing you can do to force a resolution. Employers need only demonstrate they made reasonable attempts to obtain the information.
Whether you are able to make a correction or not, the steps for addressing this in the Integrity ACA solution are similar. You first begin with the IRS filing page where your first indication of such an error is indicated.
The Company DBI has an error and we don’t yet know what it is. Clicking “Edit” allows us to see and make potential corrections:
The screen changes to this and looks like Sebastian Jones has an error:
Click the error report to see what the error is:
Based on the report, it looks like this is a classic case of TIN Validation error.
“OtherCompletePersonName” is IRS talk for “Name.” Basically, the name and SSN don’t match.
Go back to the previous screen and let’s correct the error. There are two ways to do this.
Click Edit on the Company line in IRS Filing that contains the 1095-C errors.
This will open the Filing Activity window. Click on the down arrow on the light gray 1095-C Status header and choose the second, “sort descending”. This brings all the errors together.
Option #1 – If you are confident that your data is good then click the “Ignore” button. This sets the status of the 1095-C to ignored and removes the error condition. Technically nothing is done to the 1095-C. It simply is not going to be fixed because your data is good and the IRS is either wrong or will never reconcile with yours. Nothing else to do. Please remember to make your solicitations and show due diligence before deciding to ignore. Please also note that if you do indeed decide to change something in the future you can “Un-ignore”, aka reinstate, the 1095-C to an error state and make a normal correction. The ignore process is thus a reversible event. If you Ignore a 1095-C, you will not send this back to the IRS!!
Option#2 – If you have corrections to make then you can select to edit the 1095-C record by clicking “Edit” as depicted above. Once you select edit the screen will change to the IRS Filing Activity Detail pane. See below for example.
There are three main tabs to this screen, but for SSN/NAME validation errors, all you need is on the first tab under Employee Detail / Payroll Employee. This is a quick edit access point for the employee record. The highlighted areas above shows you what you will likely need to change or correct for an employee. (Aka either Name or SSN)
If the Error is for a Dependent, you will select the blue “Employee Coverage” at the top. Scroll down to Part III and edit what is needed and Update.
NOTE!!! Once you are done with the edits you MUST select to update record by scrolling down and then clicking the Update button. This updates the record and changes the IRS status on the back end to Corrected. That status is extremely important so the system knows to send your corrections properly to the IRS.
Make your changes, then scroll.
After you click update, check for the green confirmation below
At this point you can navigate to other errored 1095-Cs you may have by navigating “previous” and “next” OR you can simple exit by clicking “Close” in the lower right corner.
You have now handled your corrections for SSN/NAME validation (or other errors) and can return to the IRS Filing page to refile only the corrected forms with the IRS. You must check to see that the box is checked for the ones you are sending back and only those. You do this by clicking on the blue 1095-C button at the end of the Company line in IRS Filing.
Questions / Resources
If you have questions or comments please email Support@integrity-data.com.
If you would like to search for information and resources for Integrity Data products check out the following sites:
- Knowledge Base: https://www.integrity-data.com/knowledge-base/
- Videos: https://www.integrity-data.com/video-library/
Last Review: 5/10/2017 – Revision: 2.0
Applies To: ACA Compliance Solution
Categories: Year End – 1095 & Filing
Keywords: TIN, Validation