IRS Error Code 3004 can occur when filing Affordable Care Act (ACA) Information Returns electronically. It is important to understand how to resolve this error and properly submit the necessary information.

Understanding ACA Information Returns

ACA Information Returns must be filed using the “AIR” (Affordable Care Act Information Return System) platform, not FIRE. This platform provides a secure and efficient way to submit the necessary information to the IRS. It is essential to understand the requirements and guidelines for filing these returns correctly.

When filing ACA Information Returns, it is crucial to use the XML format for transmission. The IRS only accepts electronic submissions in this format. It is important to note that each transmission is limited to 100MB or approximately 10,000 records. Larger transmissions must be split to meet these requirements.

There are common errors that may result in the rejection of ACA Information Returns. These errors include improper formatting, invalid HTTP Post method, invalid WS security header, and violations of WSDL schema specifications. It is essential to carefully review and follow the XML schemas and business rules published on IRS.gov for electronic filing. These guidelines differ from the formatting instructions provided in the paper return instruction booklets.

When responding to rejected returns, it is important to understand the difference between replacements and corrections. Replacements are filed when the entire transmission or individual submissions are rejected, while corrections are filed after transmission acceptance. There are two types of rejections and replacements: transmission level and submission level. The appropriate response depends on the type of rejection encountered.

Resources for Further Assistance

For further assistance with ACA Information Returns and resolving IRS Error Code 3004, the IRS provides various resources. These resources include guidance documents, FAQs, and contact information for specific support channels. It is recommended to consult these resources for accurate and up-to-date information to ensure compliance with IRS regulations.

Key Points for ACA Information Returns

There are specific requirements and deadlines for ACA Information Returns, depending on the tax year and whether corrections are needed. Understanding these key points is crucial for accurately filing your returns. Here are some important details to note:

Tax Year 2023

• For Tax Year 2023, ACA Information Returns are voluntary.
• Corrections for voluntary year returns are not required, but they will be accepted if needed.
• There are no penalties associated with voluntary year returns.

Tax Year 2024

• For Tax Year 2024, ACA Information Returns are mandatory.
• Testing for Tax Year 2024 returns began in November 2024, and filing will commence in January 2024.
• Corrections will be required for any incorrect or incomplete information in Tax Year 2024 returns.

Now, let’s take a look at the filing deadlines for ACA Information Returns:

It is important to adhere to the formatting guidelines for ACA Information Returns to avoid rejection. Common errors that may lead to rejection include improper formatting, invalid HTTP Post method, invalid WS security header, and violations of WSDL schema specifications. Ensure that you follow the XML schemas and business rules provided by the IRS for electronic filing, rather than relying solely on the formatting directions in the instruction booklets for paper returns.

Lastly, if your returns are rejected or corrections are needed, it is essential to understand the difference between replacements and corrections. Replacements are filed when the entire transmission or individual submissions are rejected, while corrections are submitted after transmission acceptance. The appropriate response will depend on the type of rejection encountered, whether it is at the transmission level or submission level.

For further assistance and resources regarding ACA Information Returns, consult the IRS website for valuable information and guidance.

Common Errors and Rejections

Filers should be aware of common errors that can lead to rejection of their ACA Information Returns and take steps to prevent them. The following are some of the most frequently encountered errors:

Formatting Errors

Improper formatting is a common reason for rejection of ACA Information Returns. Filers must ensure that their XML files adhere to the formatting requirements specified by the IRS. This includes using the correct tags, following the prescribed structure, and providing accurate data in the required fields. Failure to comply with the formatting guidelines may result in rejection of the returns.

Invalid HTTP Post Method

Another common error is using an invalid HTTP Post method when submitting ACA Information Returns. Filers must ensure that they are using the correct method for transmission, as specified by the IRS. Using an incorrect method can lead to rejection of the returns and delay the filing process.

Invalid WS Security Header

The WS security header is an essential component of the electronic filing process. Filers must ensure that the WS security header is valid and properly configured in their XML files. Failure to provide a valid WS security header can result in rejection of the returns and may require resubmission with the correct header information.

Violations of WSDL Schema Specifications

The WSDL schema specifications provide a set of rules and guidelines for the structure and content of ACA Information Returns. Filers must ensure that their XML files adhere to these specifications to avoid rejection. Violations of the WSDL schema specifications can lead to errors and inconsistencies in the returns, resulting in rejection by the IRS.

Following IRS Guidelines for Electronic Filing

Filers must ensure they follow the IRS guidelines for electronic filing of ACA Information Returns, rather than relying on instructions for paper returns. Compliance with these guidelines is crucial to avoid rejection and ensure accurate submission. Here are some key points to be aware of when filing electronically:

1. XML Schemas: The IRS provides XML schemas that must be followed for structuring and formatting the information in ACA Information Returns. It is essential to adhere to these schemas to ensure the correct interpretation and processing of the data.

2. Business Rules: The IRS has established specific business rules that must be followed when filing ACA Information Returns electronically. These rules define the acceptable formats, data fields, and other requirements for accurate submission.

3. Formatting Directions: Rather than relying on the formatting directions provided in the instruction booklets for paper returns, filers must refer to the IRS guidelines for electronic filing. These guidelines outline the specific formatting requirements for electronic submissions.

4. Instruction Booklets: While the instruction booklets provide useful information, filers should prioritize following the IRS guidelines for electronic filing. The guidelines are specifically tailored to electronic submissions and provide the most up-to-date and accurate instructions.

By adhering to the IRS guidelines for electronic filing, filers can ensure that their ACA Information Returns are submitted accurately and in compliance with the IRS requirements. This will help avoid rejections and facilitate a smoother filing process.

Replacing Rejected Returns and Submitting Corrections

Rejected returns and accepted returns that require corrections have different processes for resolution, and filers should understand the appropriate actions to take. When a return is rejected, it means the entire transmission or individual submissions within the transmission were not accepted by the IRS. In such cases, a replacement return must be filed. Replacements are submitted when the entire transmission or individual submissions within the transmission are rejected.

To replace a rejected return, filers should review the error message received from the IRS to identify the issue that caused the rejection. Once the issue has been identified, the necessary corrections should be made to the return and a new transmission must be submitted. It is important to note that a rejected return cannot simply be corrected and resubmitted; it must be replaced with a new transmission that includes all necessary corrections.

On the other hand, if a return is accepted by the IRS but requires corrections, filers should follow the process for submitting corrections for accepted returns. This involves identifying the specific submission(s) that require corrections, making the necessary changes, and resubmitting only the corrected submission(s) to the IRS. It is important to ensure that only the corrected submission(s) are included in the resubmission.

Understanding the difference between rejected returns and accepted returns that require corrections is essential for successful resolution of IRS error 3004. By following the appropriate process for each scenario, filers can ensure that their ACA Information Returns are properly filed and error-free.

Resources for Further Assistance

Filers can find additional resources and assistance from the IRS to help resolve IRS code 3004. It is important to have access to the right information and guidance when encountering this rejection code. The IRS provides various resources to aid in resolving the error and ensuring accurate filing of ACA Information Returns. Here are some valuable resources that filers can utilize:

IRS Website

The official IRS website offers a wealth of information regarding ACA Information Returns and how to resolve IRS error 3004. Filers can find detailed instructions, guidelines, and FAQs on the website. It is advisable to visit the IRS website to access the most up-to-date information and resources.

IRS Publications and Guides

The IRS publishes various publications and guides specifically designed to assist filers with ACA Information Returns. These resources provide in-depth explanations, step-by-step instructions, and examples to help navigate through the filing process. Filers should refer to these publications and guides for comprehensive assistance.

IRS Help Desk

If filers require direct assistance or have specific questions regarding IRS 3004, they can contact the IRS Help Desk. Trained professionals are available to provide guidance and address any queries related to ACA Information Returns. Contact information for the IRS Help Desk can be found on the official IRS website.

Conclusion

Understanding and resolving IRS Error Code 3004 is crucial when filing Affordable Care Act Information Returns, and filers should be proactive in following the guidelines and seeking assistance when needed.

The ACA Information Returns program requires filers to use the AIR platform for electronic filing, ensuring that returns are submitted in the correct format and transmitted electronically. It is important to note that for Tax Year 2024 returns, corrections are not required but will be accepted, while for Tax Year 2023 returns, corrections will be necessary for any incorrect or incomplete information.

When filing ACA Information Returns, it is essential to meet the deadlines set by the IRS. Returns must be furnished to recipients by February 1, 2024, and paper returns must be filed with the IRS by February 29, 2024, while electronic returns must be filed by March 31, 2024. Additionally, it is crucial to avoid common errors that may result in rejection of returns, such as improper formatting, invalid HTTP Post method, invalid WS security header, and violations of WSDL schema specifications.

To ensure successful electronic filing, filers should carefully follow the XML schemas and business rules published on IRS.gov, rather than relying solely on the formatting directions provided in the instruction booklets for paper returns. Understanding the process for replacing rejected returns and submitting corrections is also important, as there are two types of rejections and appropriate responses for each.

Filers can find further assistance and resources from the IRS to navigate the ACA Information Returns program. Staying informed and being proactive in resolving IRS Error Code 3004 will help ensure a smooth and successful filing process.