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.