1040 Modernized e-File (MeF) Known Business Rule Issues - Tax Year 2009

The TY 2009 business rules are posted on the TY 2009v4.1 Form 1040 Schema and Business Rule Page.  

All of the TY 2009 business rule issues have been resolved as follows:

• F1040-034 - MeF checks the withholding amount for Forms 1099-R in the OtherWithholdingStatement. This statement must be attached and include the withholding amounts from the 1099-R in order to pass this rule. (Updated 02/19/2010)
  
  On 04/03/2010 this business rule was updated to check for withholding from Sch K-1 in the OtherWithholdingStatement. (Updated 11/14/2011)

• F1040-059 – The business rule was updated to state “If Form 1040, Line 50 'RtrSavingsContributionsCrAmt' has a non-zero value, then Line 37 'AdjustedGrossIncomeAmt' cannot exceed the applicable limits for the various 1040 filing status as given below: (1) Filing Status "Single", "Married filing separately", "Qualifying widower" - 27,750. (2) Filing Status "Head of household" - 41,625. (3) Filing Status "Married filing jointly" - 55,500.                  

• F1040-071 - MeF was returning erroneous rejects if Lines 15a and 15b were the same amount, or when Lines 16a and 16b were the same amount.
  
  The programming was corrected on 04/03/2010 (Updated 11/14/2011)

• F1040-089 - For Tax Year 2009, if the Form 1040 Third Party Designee is checked, then the Third Party Name, Phone Number and PIN is required on all returns. The exception in prior years (If "PREPARER" was entered in the Third Party Designee name, the Phone Number and PIN was not required) does not apply for Tax Year 2009. (Updated 02/19/2010)

On 3/21/10, the verbiage of the rule was changed in an update to schema version 2009v4.1.  The new rule states: “If Form 1040, Item Third Party Designee 'ThirdPartyDesigneeInd' has a choice of 'Yes' indicated, then 'ThirdPartyDesigneeName', 'ThirdPartyDesigneePhone' and 'ThirdPartyDesigneePIN' must be present.” (Updated 11/14/11)

• F1040-093 and F1040-095 - Both business rules will be corrected to allow date of death in the processing year as well as the tax year.
  
  These business rules were disabled on 04/03/2010. (Updated 04/01/2010)

These business rules were deleted and new rules were created in schema version 2010v1.0.  The new rules are F1040-172 and F1040-173. (Updated 11/14/11)

• F1040-120 - This business rule requires a PrimarySignatureDate on joint returns. If the Primary Taxpayer (1st taxpayer listed on the return) is unable to enter a date, the Spouse Signature Date should be entered as the PrimarySignatureDate.  MeF deleted this rule and created F1040-176 in schema version 2010v1.0 to read as follows:
  
  If Form 1040 Line 2 checkbox "Married filing jointly" is checked (element 'IndividualReturnFilingStatusCd' has the value 2) and the 'PINTypeCode' in the Return Header has a value, then the following fields in the Return Header must have a value: ['PrimarySignatureDate' or 'SpouseSignatureDate'], 'JuratDisclosureCode', and ['PrimaryPINEnteredBy' or 'SpousePINEnteredBy'].

• F1040-137 and 1040-138 - Both business rules are missing Nevada (NV) as a community property state. 

These business rules were disabled on 04/03/2010. (Updated 04/01/2010)

These business rules were deleted and new rules were created in schema version 2010v1.0.  The new rules are F1040-174 and F1040-175. (Updated 11/14/11)

• F1040-164 was implemented on Sunday, March 7, 2010 as a new rule.
  
  IRS Master File indicates that the taxpayer must file Form 8862 to claim Earned Income Credit after Disallowance.

• F2441-002 - Rule changed from:  If Form 2441, Part II, Line 3 'TotalQlfdExpensesOrLimitAmt' or Part II, Line 13 'CrForChildAndDEPDCareAmt', or Part III, Line 32 'NetAllowableAmt' has a non-zero value, then Part II, Line 2(b) 'QualifyingPersonSSN' or 'QualifyingPersonLiteralCd' must have a value
  
  to:
  
  If Form 2441, Part II, Line 3 'TotalQlfdExpensesOrLimitAmt' or Part II, Line 13 'CrForChildAndDEPDCareAmt', or Part III, Line 32 'NetAllowableAmt' has a value greater than zero, then Part II, Line 2(b) 'QualifyingPersonSSN' must have a value unless 'CPYECreditLiteralCd' has the value "CPYE" in "CPYE Explanation Statement" [CPYEExplanationStatement] attached to Part II, Line 9.  (implemented 03/21/2010)

• F2441-004 was corrected on Sunday, February 28, 2010 to:
  
  If Form 2441, Part II, Line 13 'CrForChildAndDEPDCareAmt' has a value greater than zero and (Form 1040, Line 2 checkbox "Married filing jointly" is not checked (element 'IndividualReturnFilingStatusCd' does not have the value 2)) and [ Part II, Line 3 'TotalQlfdExpensesOrLimitAmt' or Part III, Line 32 'NetAllowableAmt' has a value greater than zero ], then Part II, Line 4 'PrimaryEarnedIncomeAmt' must have a value greater than zero. (updated 02/25/2010)

• F2441-006 - MeF programming will be corrected to check all W-2s in the submission for the dependent care benefit amount. Currently, if the information is not found in the first W-2, the submission is rejected. 
  
  This business rule was corrected on 03/21/2010. (updated 03/21/2010)

• F2441-012 was implemented on Sunday, February 28, 2010:
  
  If Form 2441, Part II, Line 13 'CrForChildAndDEPDCareAmt' has a value greater than zero, and (Form 1040, Line 2 checkbox "Married filing jointly" is checked (element 'IndividualReturnFilingStatusCd' has the value 2)) and [ Part II, Line 3 'TotalQlfdExpensesOrLimitAmt' or Part III, Line 32 'NetAllowableAmt' has a value greater than zero], then Part II, Line 4 'PrimaryEarnedIncomeAmt' and Part II, Line 5 'SpouseEarnedIncomeAmt' must have a value greater than zero. However, if Form 1040, 'PrimaryDateOfDeath' or 'SpouseDateOfDeath' has a value, then only one of the earned income amounts (Line 4 'PrimaryEarnedIncomeAmt' or Line 5 'SpouseEarnedIncomeAmt' ) needs to have a value greater than zero. (updated 02/25/2010)

• R0000-129 and R0000-130 - These Business Rules apply to ATS only and will be implemented on January 31, 2010:
  
  R0000-129 states “Primary SSN in the Return Header must by valid for testing.”
  R0000-130 states “If Spouse SSN in the Return Header has a value, it must be valid for testing.”
  
  (Note: Valid for testing means the 4th and 5th digits of the SSN must be "00")

• R0000-131 - The PINTypeCd must be present in the Return Header (New rule implemented 03/21/2010)

• R0000-515 - MeF was returning erroneous rejects under R0000-515 in certain situations. This programming error was corrected on 03/31/2010 at 11:00am Eastern and submissions received after this date/time will not be affected by the erroneous R0000-515 rejects.
  
  We updated the IRS database on 04/03/2010, which will allow those rejected returns received between Sunday March 28, 2010, 7:00am Eastern and Wednesday March 31, 2010 11:00am Eastern to be resubmitted electronically without the R0000-515 error.  
  
  Due to this situation, a return submitted through Legacy may have also returned an erroneous ERC 0515. (Updated 04/01/2010)

• R0000-928 and R0000-929 are ATS only Business Rules that were deleted on January 31, 2010:
  
  R0000-928 - Primary SSN in the Return Header must match the e-file database.
  R0000-929 - Spouse SSN in the Return Header must match the e-file database.

• SB-F1040-003 was implemented on Sunday, February 28th, 2010:
  
  If Schedule B (Form 1040) is present in the return, and Schedule B (Form 1040), Part I, Line 4 'CalculatedTotalTaxableIntAmt' has a non-zero value,  then it must be equal to Form 1040, Line 8a 'TaxableInterestAmt'. (updated 02/25/2010)

• SB-F1040-004 was implemented on Sunday, February 28, 2010:
  
  If Schedule B (Form 1040) is present in the return, and Schedule B (Form 1040), Part II, Line 6 'TotalOrdinaryDividendsAmt' has a non-zero value, then it must be equal to Form 1040, Line 9a 'OrdinaryDividendsAmt'. (updated 02/25/2010)

• SM-F1040-006 – This business rule was updated on 2/1/2010 to state “If Schedule M (Form 1040) is present, Line 10 Economic Recovery Payment Amount must match the efile database.”

• SM-F1040-011 - The verbiage returned with this business rule is for another business rule.  The verbiage should be: “If Form 1040 Line 2 checkbox "Married filing jointly" is checked (element 'IndividualReturnFilingStatusCd' has the value 2) and Schedule M (Form 1040) Line 10 'EconomicRecoveryPymtAmt' equals $500, then Line 11 'GovRetireeCrAmt' must have a zero value or must not be present.” (updated 04/06/2010)

The Programming has been corrected.

• SSN/Name Control mismatch - In situations where the Name Control and SSN do not match, additional rejects are generated which may not apply to the return (for example, a Name Control/SSN mismatch on a dependent may generate reject information indicating the dependent date of birth may not be the processing year, or the dependent does not meet the age requirement for a credit). This will occur on Primary SSN/Name Control mismatch, Spouse SSN/Name Control mismatch and Dependent SSN/Name Control mismatch.
  
  The name control and SSN mismatch issue was corrected and will clear these additional rejects. (updated 03/09/2010)