5

Validating the Transmission and Return Data

Section 5 Validating the Transmission and Return Data

This section explains how the AIR System will perform validations of the transmission and return data via Schema validations, Transmission Header and Manifest validations, and Business Rule checks.

When AIR receives a transmission, the following tasks are executed in this order:

1. The Receipt ID and Timestamp are generated

2. Basic Manifest validations such as TCC validations are performed in synchronous session

3. If any condition fails with the TCC or Software ID, AIR will stop processing

4. The Receipt ID, Timestamp, and Unique Transmission ID (A2A only) are returned to the Transmitter

5. The Form Data File attached to the transmission is read and written to persistent storage

6. Verify “Attachment Byte Size Number” by calculation and comparison

7. Verify that the UUID extracted from the ACA Business Correlation ID is unique for the Transmitter Control Code (TCC) extracted from the ACA Business Correlation ID

8. Verify Transmission Type Code, Tax Year and Vendor Information

9. Verify Checksum and duplicate file validation

10. Schema Validation is executed in the Form Data File

11. The Form Data File is queued for processing against the AIR Business Rules

12. Errors identified during processing against the AIR Business Rules are written to the AIR database and inserted into an Error Data File that will be returned to the Transmitter in the Acknowledgement

When errors are identified with the transmission or AIR cannot read or write the Form Data File to persistent storage, the transmission will be rejected, and the appropriate error code and description will be returned to the Transmitter in the SOAP Response message.

If the Form Data File fails Schema validation, the transmission will be rejected. The appropriate error code and description relevant to Schema validation will be returned when the Transmitter retrieves the Acknowledgement for the respective transmission.

When business rule errors are identified during processing of the Form Data File, AIR will record the error codes and descriptions and return those errors in the Error Data File attached to the Acknowledgement SOAP Response message as an MTOM encoded attachment.

Note: When entering a foreign address, AIR will only accept certain foreign country codes which are aligned with the codes that the Modernized e-File (MeF) application accepts. The list of allowable foreign country codes that IRS accepts is found at the following link: Foreign Country Code Listing for Modernized e-File (MeF) .

5.1 | Transmission Validation

This section describes the checks that are made on the transmission and the errors that will be returned to the Transmitter if the transmission is rejected before it can be saved for further processing.

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Table 5-1: AIR Error Categories

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Validating the Transmission and Return Data

Error Prefix General Description Severity Action

SHARED-XXX 1094B-XXX, 1095B- XXX, 1094C-XXX, 1095C- XXX

(TY2016+) AIRBR

(TY2015) (Business

Rule Validation Error)

Error occurred while processing the record against the business rules

Transmission Accepted with Error

Transmitter notified via the Acknowledgement

Transmitter is expected to correct the data and send correction record to IRS

5.1.1 | Missing or Multiple Attachments

Checks for missing or multiple attachments occur during the transmission synchronous process. AIR first validates that one and only one Form Data File is attached to the transmission. If there are no files attached, AIR will reject the transmission and return the appropriate error code and error description. If there is more than one XML Form Data File attached to the transmission, AIR will reject the transmission and return the appropriate error code and error description.

5.1.2 | Error Reading or Persisting the Form Data File

Errors reading or persisting the Form Data File occurs during the transmission synchronous process. AIR extracts the Form Data File from the MTOM encoded attachment, reads the file and stores the file to persistent storage. If AIR cannot read, or persist the Form Data File, AIR will reject the transmission and return an error code with a prefix AIRER .

5.1.3 | Manifest Verification Failure

Manifest verification checks occur after receipt processing (reading and persisting the XML Form Data File).

AIR will perform the following checks against the data included in the Manifest and return any errors found when the Transmitter retrieves the Acknowledgement for the transmission:

• Verify that the Test File Indicator is set to ‘P’ (PROD)

• Verify that the Transmitter Control Code (TCC – included in the ACA Business Correlation ID) is valid, in

the “Active” status, and authorized to transmit the Information Returns included in the transmission

Note: If the transmission is rejected with Header-005 or Header-006 (SysError 1 or 2) wait 48 hours, then retransmit.

• Verify that the TCC is authorized (Roles - Issuer or Transmitter) to transmit the forms in the transmission

and that the forms are in Production "P" status

• Verify TCC is active and permitted to submit specific form

• Verify that the Software ID is authorized for PROD and in the “P” status

• Verify Software ID is active for specified payment year on the manifest

• If any conditions fail in TCC or Software ID, AIR will stop processing

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• Verify “Attachment Byte Size Number” by calculation and comparison

• Verify that the UUID extracted from the ACA Business Correlation ID is unique for the Transmitter Control

Code (TCC) extracted from the ACA Business Correlation ID

• Verify Transmission Type Code, Tax Year and Vendor Information

• Verify the checksum in the manifest against the computed SHA-256 Checksum on the Form Data Files

submitted by transmitter

• Verify duplicate file validation based on checksum number and status of the transmission

Note: If an error occurs during TCC authorizations, processing stops at that point for security reasons and the remainder of the Manifest is not validated.

If the above verifications fail, AIR will reject the transmission and return a Business Rule error with a prefix MANIFEST or HEADER for TY2016 forms & beyond or an Error code prefixed with AIRMF for TY2015 forms with the following two exceptions, where these Business Rules are returned rather than an Error Code:

MANIFEST-001: If Manifest 'PriorYearDataInd' has a choice of "Yes" indicated, then 'PaymentYr' must be equal to the Processing Year minus two or more years

MANIFEST-002: If Manifest 'PriorYearDataInd' has a choice of "No" indicated, then 'PaymentYr' must not be equal to the Processing Year minus two or more

5.1.4 | Duplicate XML File Detected

Duplicate file checks occur after the Transmitter has successfully submitted the transmission to IRS. AIR checks the computed SHA-256 Checksum and the size of the Form Data File against previously processed Form Data Files submitted by the respective TCC. If the checksum that AIR identified from the Form Data File on persistent storage match a Form Data File previously transmitted by that TCC, the file will be rejected as duplicate and return a corresponding duplicate error code with prefix MANIFEST for TY2016 forms and beyond.

• The Form Data file will not be identified as duplicate if the previously submitted file status is “REJECTED”

5.1.5 | Manifest and XML File Schema Validation Failure

Manifest schema validation occurs before the Transmitter has successfully submitted the transmission to IRS. Forms 1094/1095-B and 1094/1095-C Manifest schema and XML file Schema Validation occurs after the Transmitter has successfully submitted the transmission to IRS. IRS recommends each return be run against a validating parser prior to being submitted to IRS. This pre-validation is intended to identify the majority of potential error conditions and minimize the chance of receiving errors. A validating parser compares the XML document to the defined elements and attributes of the schemas to ensure a well-formed document that adheres to the XML Schema is transmitted to IRS. Schemas provide the basic definition for elements (i.e., field length, data type, prescribed patterns, enumerations, etc.) . Data integrity depends on each data element complying with the data format specifications. If the ACA Information Return preparation software uses IRS-defined XML schemas to create the XML information return, there should be no data format errors in the return. The AIR System verifies this by validating each return in the transmission file against the schemas.

The information return documents must conform to the version of the XML schema they specify. AIR conducts XML schema validation on the Form Data File before processing. Any schema validation failures are reported back to the originating entity. If the XML does not conform to the XML Schema (missing required elements or

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XML not well formed), AIR will reject or partially accept the transmission and return an error code with a prefix AIRSH .

The Error Data File contains the error codes, the error descriptions, and the XPath reference to the element found to be in error.

Effective January 2017, the AIR schemas don't allow empty or null values within schema tags. All data elements present by virtue of an opening and a closing tag must contain a value. Empty or null tags (even for optional data elements) will result in a transmission rejection. Do not include tags for optional data elements that are empty.

Note: When an error is found during schema validation, processing stops when schema validation completes. No Business rules will be applied to the submission, and if the error is found in the Manifest, the submission (XML archive) will not be schema validated either.

Table 5-2 below includes notional samples of schema validation business rules.

Table 5-2: Schema Validation Business Rules

Error Code Error Description Text Error Category Action

XML Schema Validation Failed - not well formed AIRSH100 XML Error or missing required elements.

Transmission rejected or partially accepted

AIRSH100/AIRSH200 occurs when element schema definition does not follow the pattern. (For example: type, length, spaces, missing a required element, or using both elements in a choice field, etc.)

5.1.6 | Business Rule Errors

Business rule checks occur after the Transmitter has successfully submitted the transmission to IRS.

To the extent possible, the AIR business rules have been standardized across all information returns currently available in AIR. As additional information returns migrate to the modernized architecture, the associated business rules for those returns will be rewritten to maintain the standardization across all form types.

Beginning with Tax Year 2016 submissions, error files returned to Transmitters will show exactly which business rules were violated by the transmission rather than displaying which error codes were triggered. These rules will have a one-to-one relationship to the rules posted on the Affordable Care Act Information Returns (AIR) page. The change is designed to help Transmitters better understand the exact nature of the business rule violation.

The following error information will be returned to the Transmitter when IRS identifies errors associated with a business rule for TY2016 and beyond forms:

• Header level: HEADER-XXX-XX

• Manifest level: MANIFEST-XXX-XX

• Form level: 1094B-XXX-XX, 1095B-XXX-XX, 1094C-XXX-XX, 1095C-XXX-XX, SHARED-XXX

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Note: The first “XXX” is sequential numbering of Business Rule; second “XX” is version number of the Business Rule (as needed; left off for first version)

Beginning with Tax Year 2017, Form level rules also include Shared rules for some of the Covered Individual Group on Forms 1095-B and 1095-C. The shared rules are displayed as Shared-XXX.

Certain business rules (those with a severity of “Report Error and Reject if Over Threshold”) may cause a rejection of the entire submission, if violated in more instances than the threshold allows. If this happens, the Transmitter will receive an Error Data File containing all the rules that were violated plus a generic “Threshold” error for each threshold that was exceeded. It is the responsibility of the Transmitter to correct all business rule errors and retransmit. Business rules for the AIR forms are posted to Affordable Care Act Information Returns (AIR) page.

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