2018 ACA Information Returns Series 1 Volume 10
How-To Correct Information Returns (Part One)
Haga clic AQUÍ para la versión en español de esta publicación.
This blog post has been updated to reflect changes made to the HRM Software that affect the creation of Solicitation Notices. [12/24/2018]
Our last post in this series discussed filing electronic Information Returns and submitting Replacement files. Now we will discuss the process involved in making a good faith effort to obtain corrected information from employees.
The IRS provides an Acknowledgement (Ack) file for every electronic submission. The HRM software allows you to associate this Ack file with the electronic files you uploaded. It also provides a report of the errors that were found. Most returns ultimately receive a status of Accepted With Errors. The HRM software easily creates Solicitation Notices that request corrected information from the employees with TIN Validation errors.
How-To Create Solicitation Notices
An RTF (Rich Text Format) template is used to provide the verbiage for the notice. The HRM software then uses the information in the Ack file to auto-populate the RTF template. This process creates a notice for each employee that received a TIN Validation error. It populates each notice with the information that was reported for each employee. It also gives the employee a space to enter any corrected information.
The Datatech installation folder on your network contains a sub-folder called Templates. Inside the folder are four Sample Templates in RTF format. There are two formats, each in English and Spanish. If you desire to create notices in both languages, the HRM software is capable of using two templates at the same time to create a double-sided Notice. These can also be downloaded from our website using this LINK.
Note: When downloading templates from the Datatech online folder, right-click on a Template and choose the Save link As… or Save target as… option. Simply left-clicking on the link may download an unreadable file.
Now you can open the RTF file in your Microsoft Word application. Edit the verbiage in the sample templates as needed, or create your own template following one or more of these examples. The final verbiage on your template should be approved by the Responsible Officials before use.
Employee Solicitation Notices for 2017 Information Returns must be mailed no later than December 31, 2018. [ADD TO CALENDAR] Employee Solicitation Notices for 2018 Information Returns must be mailed no later than December 31, 2019. [ADD TO CALENDAR]
Documenting your ‘good faith’ effort to obtain corrected information helps avoid IRS penalties.
Our next post in this series will discuss what to do when employees respond to these notices with corrected information. Datatech is here to help our HRM Software users make the best use of their investment. If you have questions regarding any posts in this series, please call or email Datatech Support.
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