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How do I fix a TIN Validation Failed error?

Views: 3314 Created: 2016-07-27 14:08 Last Updated: 2016-11-01 17:42

SYMPTOM

What does the IRS status of Correction Needed due to TIN Validation Failed mean?  What should I do about this error?

RESOLUTION

A "Correction Needed" or "TIN Validation Failed" message indicates that the IRS found a Name/TIN combination on a 1095 form that does not match IRS records.  These error messages can be confusing because the IRS does not specify which name(s)/TIN(s) caused the error, and there may be multiple errors of this type on a single form.  This guide is intended to lead you through the process of correcting TIN errors so that your ACA filing can reach an "Accepted" status.

How do I know if I have a TIN Validation Error?

Greatland will inform you of a TIN Validation error via e-mail, and on the Order Status Detail report located in the E-file Center in Yearli Desktop.  To access this report:

  1. Open Yearli Desktop.
  2. Select the E-file Center menu along the top menu bar.
  3. Choose Status from the drop-down menu.
  4. Select the checkbox next to the necessary order number.
  5. Choose the Order Status Detail button.

How do I know which name or TIN is incorrect?

The Order Status Detail report available in Yearli Desktop lists the TIN errors returned by the IRS.  Unfortunately, the IRS does not provide specific information on TIN validation errors.  The only information that is provided is the name and TIN of the recipient, however, the TIN validation error could be the name/TIN combination for the recipient, or a covered individual of the recipient, or both.  Since it is impossible to know which name/TIN combination caused the error, it will be necessary to validate all name/TIN fields on the form, both recipient and covered individuals.  Also note that if you find that the name/TIN field on the recipient is incorrect, you will also need to correct their information in the Covered Individuals section.

The following is an illustration of the Order Data Detail report available in Yearli Desktop and information on how to interpret this report.

Payer TIN               Payer Name
12-3456789          ABC Company

Recipient TIN         Recipient Name One        Form                Rejection Reason
123-45-6789          Doe, John                           1095-C            TIN Validation Failed
123-45-6789          Doe, John                           1095-C            TIN Validation Failed
123-45-6789          Doe, John                           1095-C            TIN Validation Failed
987-65-4321          Smith, Jane                        1095-C            TIN Validation Failed

This example indicates that John Doe, with recipient TIN 123-45-6789, has three TIN validation errors on his Form 1095-C.  However, since the IRS does not specify which name/TIN fields on the form caused the errors, any of the following are possible and need to validated:

  • John Doe's name/TIN combination is incorrect in the Employee Name field and in the Covered Individuals field and one other individual listed in the Covered Individuals section has an incorrect name/TIN combination.
  • John Doe's name/TIN combination is incorrect in the Employee Name field or in the Covered Individuals field and two other individuals listed in the Covered Individuals section have incorrect name/TIN combinations.
  • Three individuals listed in the Covered Individuals section (not John Doe) have incorrect name/TIN combinations.

This example also shows that Jane Smith has one TIN validation error on her Form 1095-C.  Again, the error could indicate that the recipient name/TIN information is incorrect, or that there is an incorrect name/TIN in the Covered Individuals section of the 1095 form.  Either of the following are possible and need to be validated:

  • Jane Smith's name/TIN combination is incorrect in the Employee Name field or in the Covered Individuals field.
  • One individual listed in the Covered Individuals section (not Jane Smith) has an incorrect name/TIN combination.

How do I obtain the correct TIN information?

Follow these steps to ensure you have met all requirements to obtain the correct name/TIN information:

  • Check your records (HR/Benefits, Payroll data) to verify that all name/TIN combinations were entered correctly on Form 1095-C.
  • Contact the employee or employer to validate the recipient name/TIN combination and covered individuals name(s)/TIN(s).
    • 1095-B Forms - Check with the sponsoring employer or responsible individual to validate the name/TIN combination.
    • 1095-C Forms - Check with your employee to validate the name/TIN information.
  • Contact your local Social Security Administration (SSA) office to determine if your information matches the SSA's information.

Once you have identified the incorrect name/TIN fields and have obtained the correct data you may enter a 1095 correction in Yearli Desktop.  Submit your corrected forms as soon as possible.  If you do not change any data on your forms, do not resubmit your forms to the IRS.

If you are unable to obtain the correct TIN for one or more recipients or covered individuals, delete the TIN data and enter the applicable Date(s) of Birth in the appropriate fields.  The IRS will accept date of birth if the TIN is not available.  If the date of birth is not available, document your solicitation process as outlined below to avoid potential fines and penalties.

What if I can't resolve a TIN issue?

You may be unable to resolve a TIN issue if you can't reach a particular employer or individual to validate their TIN or obtain their date of birth.  It is also possible that you have taken all required steps and believe that your data is accurate.  In these cases, make sure you have documented your process thoroughly to avoid potential fines and penalties.  The IRS has outlined the following process for 1095 forms:

  • Make an initial solicitation of recipient and covered individuals' TINs at an individual's first enrollment unless you already have the required TINs.
  • If you do not receive the TINs, make the second solicitation no later than 75 days after receiving a substantially complete application for coverage.
  • If TINs are still not provided, make a third solicitation by December 31 of the year following the initial solicitation.
  • You are not required to solicit a TIN from an individual whose coverage is terminated.

How do I enter a correction?

To submit a 1095 correction from Yearli Desktop:

  1. Click the Payer List button.
  2. Double click the payer name.
  3. Find the impacted recipient name and click it once to highlight the name.
  4. Fix the recipient name and/or TIN in the recipient fields to the right, if needed.
  5. Click the Covered Individuals button.
  6. Click on the covered individual's name in the list that needs to be updated.
  7. Edit their information in the fields.
  8. Select Save.
  9. Repeat steps 7-9 for any remaining covered individuals that need to be updated.
  10. Click OK when complete.
  11. Highlight the 1095 form in the Form List.
  12. Click the Correct button.
  13. Click OK at the correction screen.
  14. Close the Manage Payer and Recipient screen.
  15. Select the E-file Center icon.
  16. Continue through the e-file process for the Corrected 1095 form.

What is the deadline to correct TIN Validation errors?

You should correct your forms as soon as possible.  Greatland's Yearli Desktop will allow you to correct your 2015 forms until November 15, 2016.

APPLIES TO

  • Current version of Yearli