Rule Number: F8962-070

Rule Number: F8962-070

Rule Text: The e-File database indicates that Form 8962 or a binary attachment with description containing "ACA Explanation" must be present in the return.

To correct the error, reference the DataValue (this indicates what person or number the rejection is related to). For more information, regarding how to view the details and data values related to rejections and refusals reference Viewing Reject and Refusals.

Possible Cause 1: Someone on the tax return is listed on a Marketplace policy, and the 8962 (Marketplace Insurance) is not included on the tax return.

• The taxpayer may be listed on a policy held by a family member or someone in their household and must report that information (this could require a Shared Policy Allocation).

Resolution: Enter the 1095-A information on the tax return.

• If the customer does not have Form 1095-A, they will need to contact the Marketplace to confirm that no one on their tax return had an active policy or obtain their 1095-A information.

  • You can find the contact information for the Marketplace here https://www.irs.gov/affordable-care-act/individuals-and-families/the-health-insurance-marketplace.

  • If the customer receives the information from the Marketplace over the phone, have them fill in a blank 1095-A from the IRS website for your records https://www.irs.gov/pub/irs-pdf/f1095a.pd

Possible Cause 2: The IRS has record of the tax customer having a Marketplace Policy, but they did not (fraud, applied for a quote, etc.)

Resolution: If the customer does not have Form 1095-A, they will need to contact the Marketplace to confirm that no one on their tax return had an active policy or obtain their 1095-A information.

• You can find the contact information for the Marketplace here https://www.irs.gov/affordable-care-act/individuals-and-families/the-health-insurance-marketplace.

• If the Marketplace confirms no active policy exists for anyone on the tax return, binary attach the ACA Explanation to the 1040.

For additional assistance correcting this rejection error, please contact 618-252-6505.

Instructions for Including ACA Explanation Binary Attachment:

1. Print Sample ACA Explanation Attachment*

2. Have the customer contact the appropriate Marketplace. Failure to contact the Marketplace and enter Form 1095-A will result in the IRS issuing the tax customer a letter and refusing to process the return until Form 1095-A information is reported on Form 8962. The Marketplace contact information is on the form and listed above.

3. After contacting the Marketplace and confirming no policies open have the customer(s) sign the Sample ACA Explanation Attachment.

4. Scan the Sample ACA Explanation Attachment into your machine.

5. Navigate to the bottom of Form 1040.

6. Select ACA Explanation.

7. Upload the correct attachment.

If you need help adding a binary attachment utilize How to Upload a Binary Attachment.

*Sample ACA Explanation attachment is not an official document and should not be treated as an official document.  The attachment is for a template only.