How do I determine whether I am an Applicable Large Employer (ALE)?
To determine if your organization is an Applicable Large Employer (ALE) under the Affordable Care Act (ACA), you need to calculate the total number of full-time employees (FTEs) and full-time equivalent employees (FTEEs) for the previous calendar year. Here’s how to do it step by step: Step 1: Count Full-Time Employees Definition of Full-Time Employee: […]
Top 8 errors from IRS FIRE System
Here are the top 10 common errors encountered when using the IRS FIRE (Filing Information Returns Electronically) System, along with descriptions and tips for avoiding them: 1. TCC Not Authorized Error: “Your TCC is not authorized to file this type of return.” Cause: The Transmitter Control Code (TCC) isn’t set up for the specific form […]
The data is not coded with a ‘G’ or ‘C’ in position 6 of the ‘B’ record(s).
The full error is: You have identified your file as a correction; however, the data is not coded with a ‘G’ or ‘C’ in position 6 of the ‘B’ record(s). This error occurs when a file is submitted to the IRS FIRE system as a correction, but the payee (‘B’) records within the file are […]
Form 1099-MISC ‘B’ records containing tax withheld appears excessive in relation to the income amounts reported.
If Form 1099-MISC ‘B’ records show tax withholding amounts that appear excessive in relation to the income amounts reported, this could indicate a mistake or a misunderstanding of how withholding should be applied and reported. Here’s how to handle this situation: What Might Cause Excessive Withholding? Incorrect Withholding Calculation: Backup withholding (usually 24%) may have […]
How does TIN Matching handle “Doing Business As” (DBA) names?
The TIN Matching system does not directly process or verify Doing Business As (DBA) names because the IRS matches only the legal name associated with the Taxpayer Identification Number (TIN) in its database. Here’s how it works: Key Points About DBA Names in TIN Matching: Legal Name Priority: The TIN Matching system matches the TIN […]
‘B’ record(s) contains non-numeric characters in the Payment Amount Fields.
If a ‘B’ record in your IRS electronic filing submission contains non-numeric characters in the Payment Amount Fields, this is an error that must be corrected to ensure the file is accepted. Understanding the Problem: ‘B’ Record Overview: The ‘B’ record represents the payee information (e.g., recipient of income) in the IRS file layout. Payment […]
