Understanding Tax Alert Codes
These alerts don't necessarily mean you've done something wrong, but they do signal something that needs attention. An alert could mean one of two things:
The IRS might need more info to process your return, potentially causing a delay.
There's missing information that could cause issues in the future.
Let's break down some common alert codes you might encounter:
Missing EIN on Other Withholding Statement
Alert Code: F1040-473 | Category: Missing Data | Severity: Alert
"On your return, a claim for Other Forms Withholding, line 25c, did not have an EIN present on the Other Withholding Statement. The IRS may contact you for validation of the requested Other Withholding claim. Please visit https://www.irs.gov/newsroom/misleading-social-media-advice-leads-to-false-claims-for-fuel-tax-credit-sick-and-family-leave-credit-household-employment-taxes-faqs-help-address-common-questions-next-steps-for-those-receiving-irs and the line 25c form instructions for additional information."
What it means: You've claimed withholding on your return (line 25c), but the corresponding statement is missing the Employer Identification Number (EIN). The IRS might ask for clarification to validate this claim.
What to do: Double-check your withholding statement for the EIN. If it's missing, contact the issuer of the statement to obtain it.
Missing SSN for Signing Officer
Alert Code: R0000-223 | Category: Missing Data | Severity: Alert
"'SSN' in 'SigningOfficerGrp' in the Return Header must have a value."
What it means: If you're filing an S-corp return (Form 1120-S), the Social Security Number (SSN) of the signing officer is missing from the return header.
What to do: Include the signing officer's SSN in the header information. While the IRS accepted the return without it, including it can prevent potential issues in the future.
Missing Mississippi K-1s
Alert Code: XMS00-106 | Category: Acceptance Validation | Severity: Warning
"Partnership, S Corporation, Estate and/or Trust Income/Loss was claimed but no Mississippi K-1s were transmitted"
What it means: You've claimed income or loss from a partnership, S corporation, estate, or trust on your Mississippi return, but the corresponding K-1 forms are missing.
What to do: Attach a PDF copy of each Mississippi K-1 form to your return.
High Refund Threshold
Alert Code: 055 | Category: Review Alert | Severity: Alert
"ELF RETURN - REFUND > APPROVAL THRESHOLD"
What it means: Your refund amount exceeds a certain threshold set by the state of Delaware.
What to do: Be prepared to provide additional information to the state if requested. They may need to verify the accuracy of your return.
Incorrect Beneficiary Data on Illinois Schedule D
Alert Code: ILSCHD-2700-3 | Category: Incorrect Data | Severity: Warning
"If the beneficiary is a disregarded entity for federal income tax purposes (ex: grantor trust, single member LLC, etc), then the owner of the disregarded entity's information and designation should be entered as the beneficiary for purposes of the schedule D. Example, if the beneficiary is a grantor trust and is owned by an individual, then the beneficiary should be designated as an I for individual. This will help to insure the proper amount of pass-through withholding will be calculated for nonresident beneficiaries."
What it means: If the beneficiary on Schedule D is a disregarded entity (like a grantor trust or single-member LLC), you need to enter the owner's information instead.
What to do: Designate the owner of the disregarded entity as the beneficiary. For instance, if the beneficiary is a grantor trust owned by an individual, designate the beneficiary as "I" for individual.
Final Thoughts
Encountering an alert code doesn't automatically mean there's a problem. Stay calm, review the alert message, and take the necessary steps to correct any issues or provide additional information