1040-US ELF: Electronic filing - Transmission and business rules (FAQ)

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MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

Question

My client's electronically filed return was rejected. Can I view a list of business rules and potential reasons and resolutions?

Answer

To learn how to address specific electronic filing business rules, click a business rule in the following table. Note that there may be more than one reason for generating a specific business rule.

Business rules Potential messages
CSUS045* Forms or schedules exceed the maximum number permitted.

Description of CSUS045*:

This business rule occurs when certain forms or schedules exceed the maximum number permitted for inclusion in an electronically filed return.

  • If you receive this business rule in the E-File Error Report in UltraTax CS, click the Detail button. The number of forms present in the electronic file is identified as "Present (#)." For example, if nine occurrences of Schedule C are included in the electronic file, Detail view displays "Present (9)."
  • If any forms are forced to print using the Edit > Override > Force Form to Print option, the electronically filed return may receive this rejection from the IRS.

For more information, see Form limitations for 1040 electronic filing.

IND-080 Cannot have both estimated tax penalty and amount overpaid.

Description of IND-080:

When the return has an amount overpaid, there cannot be an estimated tax penalty. This is an IRS electronic filing limitation. Either file the return on paper, or suppress the penalty by entering code 1 in the Suppress penalties on Form 1040: Form 2210 field in Screen Pen.

IND-098 or
IND-116
Data entry discrepancy for the Child Tax Credit.

Description of IND-098 / IND-116:

These rejections occur when there is a discrepancy with the entry for Child Tax Credit. To determine which child is causing the issue, view the rejection text in Utilities > Electronic Filing Status. Then, check the data entry for the dependents to make sure that the Social Security numbers are correct, that the numbers are assigned to the proper dependent, and that the dates of birth are entered correctly for all children. If all of this appears correct, then contact the IRS at 1-800-829-1040.

Note: For more information, choose View > Web Research > Government > IRS e-file for Individual Income Tax Returns when you have the client's return open in UltraTax CS.

F1040-174-03 Married Filing Separate returns in a community property state require data entry in Screen ComPSt.

Description of F1040-174-03:

This IRS business rule maintains that for married filing separate returns with a community property state (AZ, CA, ID, LA, NM, NV, TX, WA, and WI) entered as the postal code in Screen 1040, Community Property State Allocation Record data entry is required in Screen ComPSt.

Notes

  • This IRS business rule does not consider the situation where the taxpayer lived in a community property state in the tax year, but has since moved in the processing year, and therefore requires an electronically filed Community Property State Allocation Record. For such returns, change the filing status to married filing joint, or file the return on paper with an Allocation Worksheet.
  • This IRS business rule does not consider the situation where the taxpayer did not live in a community property state in the tax year, but has since moved to a community property state in the processing year, and therefore does not require an electronically filed Community Property State Allocation Record. For such returns, change the filing status to married filing joint, or file the return on paper.
F2441-010 Duplicate Social Security number on Form 2441.

Description of F2441-010:

This business rule indicates that information is duplicated in the Dependent information statement dialog in Screen 1040 and in the Qualifying person information for nondependents statement dialog in Screen Cr. Enter the qualifying person in the applicable statement dialog.

FW2-002 Missing information on Form W-2.

Description of FW2-002:

The IRS requires that Form W-2, Box 1 Wages; Box c Employer Name and Address; and Box e Employee Name and Address fields are completed. There is an exception for Form W-2, Box 1 Wages when combat pay has been excluded from wages; see Entering a Form W-2 with combat pay exclusion for electronic filing.

IND-031-03 or
IND-032-03
The prior-year Adjusted Gross Income amount used to verify the Self-Select PIN (Personal Identification Number) does not match the prior-year tax return.

Description of IND-031-03 / IND-032-03:

When you file using the Self-Select PIN, there are "shared secrets" that only the taxpayer and spouse should know that are entered in Screen PIN to authenticate the person entering the taxpayer and spouse PIN. Included in these shared secrets is the prior-year adjusted gross income. This amount must match the amount shown with the originally filed prior-year tax return. If the amount entered differs, the IRS will reject the return with business rule IND-031-03 for the taxpayer or business rule IND-032-03 for the spouse. To correct this issue, confirm the information with the client. If the amount appears correct, contact the IRS at 1-800-829-1040 for additional information. Or, you may choose to use the Practitioner PIN option which does not require entry of the shared secrets. To do this for all clients, choose Setup > Office Configuration > E-Filing tab, click the ERO button, and mark the Practitioner PIN Program filer checkbox.

IND-035-01 or
IND-036-01
Date of death does not match IRS Master File.

Description of IND-035-01 / IND-036-01:

The IRS allows decedent tax returns to be filed electronically for both the tax year and the current processing year. Verify that the data entered for the date of death is correct. If the date is correct, contact the IRS regarding the accuracy of the IRS Master File.

IND-039-01 or
IND-040-01 or
IND-041
Third party designee is incomplete.

Description of IND-039-01, IND-040-01, or IND-041:

When 1 (Yes) is entered in the Authorize discussion with IRS field in Screen 1040, a preparer must be attached to the return with a Designee PIN entered in Setup > Office Configuration > Preparers Tab, or the Third Party Designee section in Screen Contact must be completed.

IND-180-01 or
IND-181-01
IND-182-01 or
IND-183-01
Identity protection PIN does not match IRS records.

Description of IND-180-01, IND-181-01, IND-182-01, or IND-183-01:

Check the identity protection PIN entered in Screen Info against the CP01A notice issued by the IRS. If your client misplaced their identity protection PIN, the client should go to www.irs.gov/getanippin to retrieve their identity protection PIN or follow the steps to obtain a replacement identity protection PIN.

IND-689-01 The IRS requires the Screen PIN Signature date to be the same year the electronic file is transmitted.

Description of IND-689-01:

Change the Screen PIN Signature date to be the year transmitted.

For example, the taxpayer(s) signed the return in December while the IRS Modernized e-File (MeF) system was down for maintenance. When transmitting in January or February of the following year, the December date will be rejected by the IRS with rejection code IND-689. Enter the January or February date in the year the electronic file is transmitted in the Signature date field in Screen PIN. Then, re-create and retransmit the electronic file.

R0000-500-01 or
F1099R-502-02 or
FW2-502 or
FW2G-502
Employer identification number on Form W-2, 1099, or W-2G, or the Social Security number does not match the number in the IRS database.

Description of R0000-500-01, F1099R-502-02, FW2-502, or FW2G-502:

Employer identification number does not match: During processing of the electronic file, the IRS matches the Employer Identification Number on Forms W-2, W-2G, and 1099-R. You must enter the payer's name exactly as the name appears on the information document the client received. If the IRS still rejects the return, contact the payer. Please note that you can override the name control on Form W-2, W-2G, or 1099-R for electronic filing. The name control consists of the first four characters in the name of the payer. To override the name control, choose View > Form, then choose the applicable W-2 for ELF, W-2G for ELF, or 1099-R for ELF form and enter the override in the Name control field.

Social Security number does not match: You must enter the last name exactly as the last name appears on the client's Social Security card. If the person's name has changed and he or she has not reported the name change to the Social Security administration, contact the local Social Security office to correct the problem. You can call the National Social Security office at 1-800-772-1213.

R0000-905-01 Electronic Filing Identification Number (EFIN) of the originator must be for a valid electronic filer.

Description of R0000-905-01:

When a return is rejected with a business rule of R0000-905, the business rule generally indicates a registration problem with the IRS e-file program.

Verify that you correctly entered your Electronic Filer Identification Number (EFIN) in the Setup > Office Configuration > Electronic Filing tab. If your firm uses one EFIN, enter that EFIN in the provided field. If your firm uses multiple EFINs, click the Preparers tab, edit the preparer assigned to the rejected return, and verify the EFIN entered.

If you correctly entered your EFIN, call the IRS e-file help line at 1-866-255-0654 and request to update your electronic filing registration.

SC-F1040-003-01 Vehicle information is incomplete.

Description of SC-F1040-003-01:

The business rule indicates that the Schedule C, Page 2, Part IV, Information on Your Vehicle section has not been completed and Form 4562 is not present. Often, this occurs when the Car and truck (Force) field in Screen C-2 is used to enter automobile expenses for the Schedule C. The IRS requires that if there is an entry for car and truck expenses, either Form 4562 must be present or the questions on Page 2 of Schedule C must be completed. To avoid this business rule, enter the car and truck expenses in the Asset tab of the Schedule C activity, rather than using the Car and truck (Force) field. Also, review for vehicles that do not have business mile entries.

If you do not use the Asset tab to enter depreciation, follow the steps below to enter the date for Schedule C, Page 2, line 43.

  1. Choose File > Client Properties.
  2. Click the Advanced Properties button.
  3. Click the Enter Asset Detail tab.
  4. Clear the Enter asset detail information checkbox, and when prompted, click Yes to proceed.
  5. Click OK twice.
  6. Click the Business folder in the folders block, click the Auto tab, and enter the date in the Veh 1 - Date field.
  7. Repeat steps 1 - 4 to mark the Enter asset detail information checkbox.
  8. Create the electronic file.
SEIC-F1040-004-04 The IRS requires Schedule EIC, Line 6, Number of months child lived with you, to be 12 for a child who was born or died in the current tax year. A dependent entry of less than 12 months must be filed on paper.

Description of SEIC-F1040-004-04:

In the statement dialog for the Dependent information field in Screen 1040, if the Mos Home column is less than 12 and the child was born or died in the current tax year, the return must be filed on paper to claim the EIC for this dependent.

If the child was born or died in the tax year, and the taxpayer's home was the child's home for more than half the time the child was alive during the tax year, simply change the Mos Home column to 12 to clear error SEIC-F1040-004-04.

Otherwise, do the following:

  • To paper file the return, enter SEIC-F1040-004-04 in the UltraTax CS error reject code (ERC) field in the Form 8948 - Paper Filing Exceptions section in Screen ELF.
  • Alternatively, to elect to electronically file the return while not reporting this dependent on Schedule EIC, change the Dep Code column to 6 (Children who lived with this client, do not qualify for EIC) to clear error SEIC-F1040-004-04.

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