NEW 2021 REJECT CODE: F8962-070

This is the IRS’ top reject so far across the country, across all software vendors. Please disseminate this to your staff as you see fit.

  • This reject occurs when the IRS database has record of any SSN on the return receiving an advance payment.
    • Taxpayer, spouse, dependent.
  • Even if they received an advance payment for just one month, the 8962 is required.
  • Providers have until January 31st to mail the 1095-A to taxpayers, so many have not received theirs yet.
  • If they dispute the need for the 8962, the return will be processed by hand, which will result in significant delays, usually 3-6 months.
  • History also tells us the IRS tends to bypass the bank products on many of these hand processed returns. They simply mail a check to the taxpayer.
  • We are still awaiting guidance from the IRS about attaching a PDF for dispute/calculations.

This website has a great deal of useful information on the subject:

https://www.healthcare.gov/taxes/