1040 E-file: Reviewing Diagnostics: Validations

The IRS has defined a rigid structure that must be used to create e-filed tax returns. This structure is necessary and critical to ensure e-file returns can be transmitted to and viewed by IRS systems. E-file returns not meeting these requirements will be rejected by the IRS.

To ensure returns meet its strict formatting requirements, the IRS performs two levels of validations on all received returns: business rule validation and schema validation.

Business Rule Validation

The e-file system verifies the return data against a series of business rules. Most business rules test for such things as missing information, mismatched information, or incorrect data. Two examples are:

If Form 1040, line 2 check box Married filing jointly is checked, then both the Primary SSN and the Spouse SSN must be present in the return.
If Schedule EIC is present in the return, Form 1040, line 64a must have a value.

Errors will result in a rejected return.

Business rules also include database validation checks to ensure information contained in the e-file agrees with information contained in the IRS databases. For example, if the taxpayer’s SSN and Name Control (first four characters of the taxpayer’s last name) do not match data in the IRS e-file database, the return will be rejected.

Schema Validation

Schemas provide the basic definition for elements – what is required, field length, data type, allowable values, and so forth. Data integrity depends on each data element complying with the data format specifications. The e-file system verifies this by validating each return against the schemas. If a data format error is encountered, the return is rejected.

Reject Diagnostics and Validation Errors

When an e-file is enabled, Reject Diagnostics are generated when conditions exist within the return that would result in the most common business rule errors. When the e-file is created, XML Validation Errors are generated if the XML does not adhere to all the schema rules. Reject Diagnostics and XML Validation Errors can be reviewed through the View > Diagnostics menu.

How to Find the E-file Diagnostics

Click here to see a short video about how to use the e-file diagnostics information in Organizer.

https://onesourcesupport.onesourcelogin.com/Product/self_Service/SearchingforDiagnostics/index.html

E-file/1040_ef_return_8.htm/TY2020

Last Modified: 09/13/2021

Last System Build: 09/13/2021