7

Corrections and Replacements

Section 7 Corrections and Replacements

7.1 | Corrections Process

Corrections can only be made to previous transmissions that have been “Accepted, Accepted with Errors or Partially Accepted” . Transmitters should file corrections with IRS as soon as possible and furnish a copy of the corrected return to the Recipient. Transmissions containing correction records must only contain corrections and should not include any “Original” records. Corrections may be filed for the following form types:

• Form 1095-B

• Form 1094-C, Authoritative Transmittals only

• Form 1095-C

Note: Although both the Form 1094-B and Form 1094-C are transmittal forms, the Form 1094-B is purely a transmittal document and, therefore, does not require correction. The Form 1094-C Authoritative Transmittal contains additional information that may need to be corrected. The Form 1094-C must be submitted alone when a correction is required to the Form 1094-C, Authoritative Transmittal itself. Otherwise, the Form 1094-C must be submitted with one or more “corrected” Forms 1095-C.

The correction process can be utilized when:

• IRS notifies the Transmitter or Issuer of one or more errors on the transmittal (Form 1094-C Authoritative

Transmittal) or information returns (Forms 1095-B or Forms 1095-C) filed.

• The Transmitter or Issuer identifies one or more errors on the transmittal (Form 1094-C Authoritative

Transmittal) or information returns (Forms 1095-B or Forms 1095-C) filed.

• The Employee or Covered Individual reports an error

The unique identifiers assigned by AIR allow corrections to the specific record(s), both transmittal records (Forms 1094) and information return records (Forms 1095) defined above in Section 3.

See the example and figure below illustrating multiple corrections to a single record.

For example, the Form 1094 data located in submission 10 of a transmission would have a USID as follows:

USID= 1094B-PY-00700283|10

The Form 1095 data located in record 2 of submission 10 of a transmission would have a URID as follows:

URID= 1094B-PY-00700283|10|2

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Figure 7-1: Reference Records to be Corrected

7.1.1 | Transmitting Corrections

Guidelines for transmitting corrections:

• Do not submit original and corrected documents in the same file

• If the transmission is identified as containing corrections in the Manifest ( TransmissionTypeCd is

‘C’), then the “ CorrectedInd ” in the Form Data File has to be set to "1" and must include either the “ CorrectedUniqueSubmissionId ” (if the correction is for Form 1094-C) or the “ CorrectedUniqueRecordId ” (if the correction is for Form 1095) which references the record that is being corrected

• If a Correction is found to be in error and needs to be corrected, submit a Correction to the most recently

accepted Correction – File only one Correction per Unique Submission ID when correcting a Form 1094-C Authoritative Transmittal or Unique Record ID when correcting a Form 1095

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Corrections and Replacements

• Correction records will carry both a “Record ID” to uniquely identify the correcting record, as well as the

Unique ID of the 1094-C or 1095 Record to be corrected

• For Form 1094-C use “ SubmissionId ” and “ CorrectedUniqueSubmissionId ”

• For Form 1095-B and C use “ RecordId ” and “ CorrectedUniqueRecordId ”

• Always include the complete record for the Correction; do not supply only the Corrected data elements

within the correcting record

• When the transmission is Accepted with Errors and the only errors identified are Manifest errors with

a severity of “Report Error”, these errors cannot be corrected, and the messages are for informational purposes only

7.1.2 | Transmitting Form 1094-C Corrections (Authoritative Transmittals Only)

The system can accept original transmissions for any tax year listed on irs.gov (2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025 and 2026 however, the system can only accept corrections for 6 tax years preceding the current year. For example, for the Filing year 2026, AIR system will accept corrections for 2020, 2021, 2022, 2023, 2024, 2025, 2026 and not for 2015, 2016, 2017, 2018 or 2019. If an original transmission requires corrections to the Form 1094-C Authoritative Transmittal, include the following (see schema and business rules):

• Populate the Form 1094-C “ CorrectedInd ” with “1”

• A “ UniqueTransmissionId ” for the transmission

• A “ TransmissionTypeCd ” in the Manifest should be “C” for corrections

• A “ SubmissionId ” (SID) for the correction Transmittal record

• The “ CorrectedUniqueSubmissionId ” (CUSID) identifying the record that is being corrected

• A “ CorrectedSubmissionPayerName ” this is the Payer Business Name from the submission (1094-C)

being corrected

• And “ CorrectedSubmissionPayerTIN ” this is Payer Taxpayer Identification Number (EIN) from the

submission (1094-C) being corrected

• A Non-authoritative 1094-C cannot be corrected.

Examples of key data fields from the original record to be corrected are the Name of ALE Member (Employer) and the Employer Identification Number (EIN). Note: These fields are necessary to allow IRS to associate the correction record to the original record even when the Unique ID’s don’t match. Do not attach any Forms 1095-C.

Note: Please remember to mark the Corrected Form 1094-C as an “Authoritative Transmittal” and to complete the entire record Parts I, II, III and if applicable Part IV (not just the Name and EIN).

When correcting Form 1094-C Authoritative Transmittal entity data that also appears on associated Forms 1095-C (Name and EIN), it is not necessary to submit changes to every associated Form 1095-C in order to correct that information on the Forms 1095-C. IRS internal systems will associate appropriate entity information to existing Form 1095-C records.

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Corrections and Replacements

7.1.3 | Transmitting Forms 1095-B or 1095-C Corrections

If an original transmission requires corrections to the Forms 1095-B and 1095-C, include the following (see schema and business rules):

• Populate the Form 1095-B or 1095-C “ CorrectedInd ” with “1”. Note: The “ CorrectedInd ” in the Form

1094-C should be “0”. The Form 1094-B is purely a transmittal document and, therefore, does not have a “ CorrectedInd ”.

• A “ UniqueTransmissionId ” for the transmission

• “ TransmissionTypeCd ” in the Manifest should be “C” for corrections

• A “ SubmissionId ” for the Transmittal (Form 1094) record

• A “ RecordId ” of the correction record

• The “ CorrectedUniqueRecordId ” (CURID) identifying the record that is being corrected

• Include the other required fields in the “ CorrectedRecordRecipientGrp ”

Elements in the " CorrectedRecordRecipientGrp " include Recipient Name and TIN from the original record to be corrected.

• For a Form 1095-B provide the Business or Individual name and TIN,

• For a Form 1095-C provide the Employee name and TIN.

• Only complete the accompanying Form 1094-C through the element “AuthoritativeTransmittalInd”. Parts

II, III and IV of the Form 1094-C, should not be completed when correcting the 1095-B or 1095-C.

Note: “AuthoritativeTransmittalInd” is now required on “1094C”. When filing a form “1095C” correction, the “AuthoritativeTransmittalInd” should be marked “0”. These fields are necessary to allow IRS to associate the correction record to the original record even when the Unique IDs don’t match.

7.1.4 | Transmitting Form 1094-C and Form 1095-C Corrections

If an original transmission requires corrections to both the Forms 1094-C Authoritative Transmittal and 1095-C, file two separate transmissions.

• The first transmission will be to correct the Form 1094-C Authoritative Transmittal only, by following the

Form 1094-C Authoritative Transmittal Correction Process outlined above.

• The second transmission will be to correct the Form 1095-C by following the Form 1095-C Correction

Process outlined above. Only complete the accompanying Form 1094-C through the element “AuthoritativeTransmittalInd”. Parts II, III and IV of the Form 1094-C, should not be completed. Please note: “AuthoritativeTransmittalInd” is now required. On a 1095-C Correction, it should be marked “0”.

If, after submitting a correction, IRS identifies a subsequent error, or if the Transmitter identifies a subsequent error, you must utilize the Unique IDs associated with the correction . See Figure 7-1 above.

Note: The original record may only be corrected once.

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Corrections and Replacements

7.2 | Rejected Transmissions

Both the Portal and AIR can “Reject” transmissions. However, the replacement process only applies to Transmissions or Submissions rejected by AIR.

7.2.1 | Transmissions Rejected by Portal

When a transmission is rejected by IRS Portal, the Transmitter will receive a fault (error) code that is prefixed with ‘TPE’. The corresponding error description message will contain information about the errors that was detected.

The table of fault codes produced by IRS Portal is included in Section 4.4 of this document.

When a transmission is rejected by IRS Portal, the Transmitter must fix the problem that caused the rejection and resend the transmission. In the case where the message size is too large, the Transmitter must reduce the number of records in the Form Data File before resending the transmission.

Note: Use the same “ TransmissionTypeCd ” that was used when the transmission was rejected by the Portal to resubmit the file.

7.2.2 | Transmissions/Submissions Rejected by AIR

When AIR rejects the transmission due to malformed schema, a missing required element or a pattern mismatch, the Error Code returned to the Transmitter will be prefixed with ‘ AIRSH ’. Business rule validation provides Submission level rejections, along with Transmission level rejections. None of the records included in a transmission/submission that are rejected are maintained in IRS data stores. Thus, when a transmission or submission is rejected by AIR, a replacement transmission or submission must be submitted.

The following are reasons for a rejection at the Transmission level or Submission level (Forms 1094/1095-B and 1094/1095-C);

A complete Transmission can be rejected due to:

• A fatal error identified while processing the transmission metadata

• Schema validation failed on the schema

• Business rule failures at the transmission level (ex: Manifest error, Incorrect Submission ID in Form Data

File)

• All Submissions within the transmission are rejected

Note: The above situation requires the Transmitters to replace the entire Transmission.

A Transmission can be Partially Accepted when one or more submissions, but not all, are rejected.

A Submission can be rejected due to:

• Schema validation failed on the Form Data XML File

• Business Rule Failures (ex: Form 1094 Incorrect or Missing Tax Year), which will lead to that Submission

rejection (Form 1094 and its corresponding 1095 Forms).

Note: The above situation requires the Transmitters to replace only the rejected Submission(s).

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Corrections and Replacements

7.3 | Replacement Process - Transmitting Replacements

A replacement transmission must contain all the records submitted to IRS for processing in the rejected Transmission or Submission that is being replaced. Transmitters should submit an acceptable replacement transmission no later than 60 days after the date the rejected status of the original transmission was available . The 60-day adjustment applies whether or not the original transmission was received before or after the ACA Information Returns due date. When an acceptable replacement transmission is received within 60 days from the date the status was available, the file will be treated as filed on the original transmission received date. If an acceptable replacement transmission is received after the 60 days, the file will be treated as filed on the date the replacement transmission is received. In this way, any applicable late-filing penalty is calculated based on the date the transmission was received.

Note: Transmitters should wait until a transmission is processed and the Acknowledgement File status is either 'Rejected' or 'Partially Accepted' by IRS before submitting a replacement transmission or submission.

Transmitters can replace rejected Transmissions, as well as rejected Submissions. Replacements can only be transmitted for previously rejected Transmissions or Submissions. AIR requires replacements to use specific identifiers to reference the original rejected transmission/submission. When replacing a transmission, the Manifest XML Schema includes an element “ OriginalReceiptId ” which references the Receipt ID of the original transmission that is being replaced.

When replacing a submission, the Form Data File element “O riginalUniqueSubmissionId ” is used to reference the Submission ID of the original submission that is being replaced. When submissions are replaced, the Manifest data element “ OriginalReceiptId ” is not used .

Only transmissions that contained original records ( TransmissionTypeCd is ‘O’) that were rejected require a replacement transmission. When a transmission, containing original records, is rejected ( TransmissionTypeCd is ‘O’), the Transmitter must fix the problem that caused the rejection and resend the transmission as a replacement ( TransmissionTypeCd is ‘R’).

However, if a transmission containing correction records is rejected ( TransmissionTypeCd is ‘C’), the Transmitter must fix the problem that caused the rejection and resend the transmission ( TransmissionTypeCd remains ‘C’). An individual original submission within a transmission can be rejected by IRS in a Partially Accepted transmission. The original submission should be fixed and retransmitted in a replacement transmission ( TransmissionTypeCd is 'R').

7.3.1 | Replacement Transmissions

Replacement transmissions must include the following requirements (see schema and business rules for additional details):

• A “ UniqueTransmissionId ” for the replacement transmission

• “ TransmissionTypeCd ” in the Manifest should be “R” for replacement

• Include the “ OriginalReceiptId ” data element in the Manifest identifying the original transmission that is

being replaced

• ACA Business Correlation ID (" UniqueTransmissionId ") in the Manifest should be unique for each

transmission (UUID which is part of UTID will be checked for uniqueness against that TCC).

• " DocumentSystemFileNm " in the Manifest should match the name of the Form Data File

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• " ChecksumAugmentationNum " in the Manifest should be unique for each transmission

• Replacement transmission should not include any additional replacing/new submissions

Do not

• Include the “ OriginalUniqueSubmissionId ” in the Form Data File

7.3.1.1 | Replacing an Original Transmission that Rejected

If the original Transmission was “Rejected”, then replace the entire Transmission by using the Receipt ID from the Rejected Transmission to populate the Manifest Data element " OriginalReceiptId " of the Replacement Transmission.

Replacement transmissions must include the following requirements (see schema and business rules for additional details):

• A “ UniqueTransmissionId ” for the replacement transmission (ACA Business Correlation ID

(UniqueTransmissionId) in the Manifest should be unique for each transmission (UUID which is part of UTID will be checked for uniqueness against that TCC)

• “ TransmissionTypeCd ” in the Manifest should be “R” for replacements

• Include the “ OriginalReceiptId ” data element identifying the original transmission that is being replaced

• " DocumentSystemFileNm " in the Manifest should match the name of the Form Data File

• " ChecksumAugmentationNum " in the Manifest should be unique for each transmission

Do not:

• Include any additional or new submissions

• Include the “ OriginalUniqueSubmissionId ” in the Form Data File

• Try to replace individual submissions within a rejected transmission

• Try to replace a transmission that was not rejected

• Try to replace a transmission that has been successfully replaced

7.3.1.2 | Replacing a ‘Replacement’ Transmission that Rejected

If an Original Transmission is rejected and the Replacement Transmission is also rejected, then replace the first (EARLIEST) rejected Transmission in the chain by populating the Manifest Data element ‘OriginalReceiptId’ with the Receipt Id that references the EARLIEST rejected Transmission in the chain. Please see Figure 7-2 for an illustration of the earliest rejected Transmission in the chain.

Replacement Transmissions must include the following requirements (see schema and business rules for additional details):

• A “ U niqueTransmissionId ” for the replacement transmission (ACA Business Correlation ID

( UniqueTransmissionId ) in the Manifest should be unique for each transmission (UUID which is part of UTID will be checked for uniqueness against that TCC)

• “ TransmissionTypeCd ” in the Manifest should be “R” for replacements

• Include the “ OriginalReceiptId ” data element identifying the Receipt Id that references the first rejected

transmission, which contained a TransmissionTypeCd of "O", in the chain

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Corrections and Replacements

• " D ocumentSystemFileNm " in the Manifest should match the name of the Form Data File

• " ChecksumAugmentationNum " in the Manifest should be unique for each transmission

• Replacement transmission should not include any additional or new submissions

Do not:

• Include the “ OriginalUniqueSubmissionId ” in the Form Data File

• Try to replace a rejected replacement transmission

• Try to replace individual submissions within a rejected transmission

• Try to replace a transmission that was not rejected

• Try to replace a transmission that has been successfully replaced

Figure 7-2 depicts the replacement process where both the initial transmission and the first replacement attempt were rejected by AIR.

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Corrections and Replacements

Figure 7-2: Replacing a Rejected Transmission

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Corrections and Replacements

7.3.2 | Replacement Submissions

Replacement submissions must include the following requirements (see schema and business rules for additional details):

• A “ UniqueTransmissionId ” for the replacement transmission

• “ TransmissionTypeCd ” in the Manifest should be “R” for replacement

• Include the “ OriginalUniqueSubmissionId ” in the Form Data File identifying the submission that is

being replaced

• Duplicate replacement Submission (s) included within the same transmission will be rejected.

• Replacement transmission should not include any new submissions

Do not

• Include the “ OriginalReceiptId ” data element in the Manifest

7.3.2.1 | Replacing Submission Within a Partially Accepted Transmission

If the Original Transmission was Partially-Accepted, then replace the individual Submission(s) that were rejected by populating the data element “ OriginalUniqueSubmissionId ” in each replacement Submission (Form 1094) with the “ UniqueSubmissionId ” from the Submission Header of the rejected Submission(s). When filing replacement Submission(s) for submissions that were rejected within a Partially Accepted Transmission, adhere to the following requirements (see schema and business rules for additional details):

• A “ UniqueTransmissionId ” for the replacement transmission

• “ TransmissionTypeCd ” in the Manifest should be “R” for replacement

• Include the “ OriginalUniqueSubmissionId ” in the Form Data File identifying the submission that is

being replaced from the original Partially Accepted transmission

• Duplicate replacement Submission ID(s) included within the same transmission will be rejected.

• Replacement transmission should not include any new submissions

Do not

• Include the “OriginalReceiptId” data element in the Manifest

• Submit a submission-level replacement for a transmission that was rejected

7.3.2.2 | Replacing a Submission from a Partially Accepted Original Transmission when the Replacement Transmission or Submission was Rejected

If the original Transmission is Partially Accepted, and the Transmission with the replacement submissions is Rejected or Partially Accepted, then transmit another replacement transmission using the Submission IDs from the original rejected submissions. In either case always replace the first rejected submission in the chain of rejected submissions when one or more replacements are rejected. Please refer to Figure 7-3 and 7-3A.

Note: The first rejected Submission(s) in the chain of rejections does not relate to the order of submissions within an individual Transmission. Figure 7-3 depicts the Submission-Replacement process where a replacement Submission was rejected.

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Figure 7-3: Visual depicting the first-rejected submission in a chain of rejections that should be replaced

Figure 7-3A: Visual showing the first-rejected submission should be replaced when the replacement transmission is rejected

Figure 7-3A illustrates a similar situation when the entire replacement transmission was rejected

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Corrections and Replacements

If filing a replacement Submission from a Partially Accepted Transmission where the replacement was rejected, adhere to the following requirements (see schema and business rules for additional details):

• A “ UniqueTransmissionId ” for the replacement transmission

• “ TransmissionTypeCd ” in the Manifest should be “R” for replacement

• Include the “ OriginalUniqueSubmissionId ” in each replacement submission Form data file with the

Unique Submission ID from the header within the earliest rejected Submission in a sequence within a Partially Accepted Transmission that is being replaced (refer to Figures 7-3 and 7-3A)

• Duplicate replacement Submission ID(s) included within the same transmission will be rejected.

• Replacement transmission should not include any new submissions

Do not

• Include the “ OriginalReceiptId ” data element in the Manifest

• Replace a submission within a Submission Replacement Transmission that was rejected

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