IRS REJECT - FORM 8962 MUST BE PRESENT

Common error in preparation:
On the Client Data form in Desktop Software, the preparer may have checked the box in the 
"Marketplace" Health Insurance section when no 1095A was received. The preparer will receive verification warnings to complete the 8962. If the Questionnaire is incomplete, the return may be rejected for an explanation. 
The IRS checks the SSN against the database of SSNs who have qualified for Marketplace Insurance.  Even if the taxpayer never received benefits, they are included in the database. For this reason, they must submit their explanation for not claiming amounts on a 1095-A.


Form 8962 Must Be Present
RuleNumber: F8962-070  e-File Database indicates that Form 8962 or binary attachment must be present.

Possible reason for rejection:

• Taxpayers placed applications through the Health Insurance Marketplace but never actually received advance payments during the tax year.
• Medicare/Medicaid recipients may also have the flag present at the IRS database.

Resolution

1. If the taxpayer received a 1095-A, use the questionnaire on the Client Data Screen to input required data on the worksheet. This will generate the required 8962. 
2. If the taxpayer did not receive a 1095-A, they must provide a signed statement in the Binary Attachment section at the bottom of Form 1040. 
   Example: TP Name, TP SSN  " I did not receive Marketplace Insurance benefits for Tax Year 20XX.  I did not receive a 1095-A."   Signature and Date Signed
3. Use the import or scan document buttons to attach the required PDF statement. Important Note: The file must be in PDF format before attaching to this section. 
4. Once the file is attached, fill in the Description section. Click Ok.
5. The Binary attachment is then added to the 1040 Federal Tax return.