VeriTracACA Software Highlights Only Necessary Errors To Be Corrected

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BenefitScape's updated VeriTracACA identifies only those few errors that require soliciting a correction, saving clients significant time, money and employee disruption. 

 

The BenefitScape VeriTracACA software captures all of the IRS errors generated by the IRS AIR System and selects only those that need to be corrected under the IRS guidance.  This process often cuts down the errors requiring correction from hundreds to a few. The proposed regulations published in the Federal Register are guidance that taxpayers may rely upon. They essentially indicate that with one exception for missing SSN, an employer does not have to do anything with these error messages at this time.  If action is required for the exceptions to the general guidance, the BenefitScape VeriTracACA software will detect and guide any necessary corrections.  The result is 100% compliance for every client.



Employers are Drowning in IRS AIR Corrections


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After filing with IRS AIR for Tax Year 2015, many employees were left drowning in errors and corrections with nothing to latch onto. The IRS published proposed regulations in the Federal Register that clarify what employers must do in response to any Tax Identification Number (TIN) errors that were created based upon the employers ACA IRS filing. 

BenefitScape solved this problem with a software feature called VeriTracACA© that implements the IRS guidance on the data verification and error correction effort required for ACA compliance.  When implementing VeriTracACA©, reflecting the latest IRS guidance on the most common IRS AIR error i.e. “TIN Validation Failed”, BenefitScape has found that a substantial number of errors can be eliminated and need not be corrected, cutting the corrections effort substantially. The correction process is guided by VeriTracACA© which extracts the error data from the IRS AIR platform and then formats it in a fashion that allows its online correction and re-submission.

The Corrections Problem

Employers and other providers of Health coverage provided information on Form 1095 to each covered employee and to the IRS. This information contained TIN (SSN) and name for both employee and in some cases their covered dependents. 

 

The IRS AIR validation system examined this data and in many cases indicated that there was an error (“AIRTN500 TIN Validation Failed”) while matching the data provided with the data contained in one or many IRS data bases. 


Old Guidance: Employers were held accountable to review and attempt to correct ( ie. after solicitation) all of the errors the IRS found within a reasonable time frame.
New Guidance: With one exception, an employer does not have to do anything with the Tax Identification Number (TIN) Error message at this time. The exception being a “missing” SSN, that is, a SSN that is incorrect in its format. i.e. the SSN does not contain nine digits or includes alpha characters as one of the nine digits.