Attention: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs. ALERT: IRS Modernized e-File (MeF) Stakeholders have expressed concern with the increased number of tax returns rejecting when the Business Name has special characters included. Modernized e-File created a new Business Rule, R0000-240, to ensure that the Business Name, "BusinessNameLine1Type", and the Name Control, "BusinessNameControlType", from the tax return matches the IRS e-file database for the Employee ID number (EIN). Our research found that Business Rule R0000-240 is working as intended and the rejects are valid. Guidance: Generally, the Name Control should be determined from the information specified on the first name line of the tax return. A Name Control is derived from the first four significant characters of the name including any special characters such as an Ampersand (&) and Hyphen (-). Please ensure that your clients are aware that it is their responsibility to keep their legal business name updated with the IRS. If a change is required, the taxpayer may submit Form 8822-B or contact the IRS Business & Specialty Tax Line at 800-829-4933 for additional assistance. Please refer to Publication 4164 exhibits for additional guidance on creating valid Business Name Controls. Starting on page 254, 13.1 Exhibit 1, titled Business Name Control and 13.4 Exhibit 4, titled Employment Tax Name Control. Modernized e-File (MeF) user guides and publications | Internal Revenue Service. Please visit the Modernized e-file (MeF) Schemas and Business Rules page on IRS.gov for more information about Schemas and Business Rules. Software Developers and State organizations may download Schemas and Business Rules from their e-Services mailbox. To access these files, the following is needed: - Active e-Services account
- Listed on an e-File application with the provider option of Software Developer or State
- Software Developer must have an associated tax type of 720, 94x, 990x, 990-T, 1041,1065, 1120x, 1120-POL, and 8849.
You may have several messages in your account. Please open all of them to find the set you would like to download. After 60 days the messages are purged. If you have the appropriate role and do not have these files available for download within 48 hours, please contact the MeF Mailbox with the Company Name, ETIN and Schema Package(s) with Tax Year needed. |
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