Validations
The IRS has defined a rigid structure that must be used to create e-file tax returns. This structure is necessary and critical to ensure e-file returns can be transmitted to and viewed by IRS systems. E-file returns not meeting these requirements will be rejected by the IRS.
To ensure returns meet its strict formatting requirements, the IRS performs 2 levels of validations on all received returns: business rule validation and schema validation.
Business rule validation
The MeF system verifies the return data against a series of business rules. Most business rules test for such things as missing information, mismatched information, or incorrect data.
2 examples are:
- If Form 1120, line 8 has a non-zero value, then Schedule D (Form 1120) must be attached.
- If Form 1120, Schedule L is present, Form 1120, Item D Total Assets must equal Form 1120, Schedule L, line 15d.
A business rule that fails will result in a reject diagnostic and will prevent the return from being e-filed.
Business rule validations consist of 2 types of reject diagnostics. One type of reject diagnostic compares information within the return to the business rules. These diagnostics can be cleared by correcting the tax return information and computing the return.
The 2nd type of diagnostic is generated by the Business Rules Management System (BRMS). The BRMS compares the e-file XML file to the business rules. These diagnostics are cleared by correcting the tax return information and re-creating the e-file or re-generating the validation file. Diagnostics generated through BRMS are identified by an asterisk appearing in front of the diagnostic.
Business rules also include database validation checks to ensure information contained in the e-file agrees with information contained in the IRS databases. For example, if the taxpayer’s EIN and Name Control (1st 4 characters of the taxpayer name) don't match data in the IRS e-file database, the return will be rejected. This type of business rule violation can't be detected until the return is submitted to the IRS.
Schema validation
Schemas provide the basic definition for elements – what's required, field length, data type, allowable values. Data integrity depends on each data element complying with the data format specifications. The MeF system verifies this by validating each return against the schemas. If a data format error is encountered, the return is rejected.
When the e-file is created, we automatically validate the XML file against the IRS schemas. If there are XML validation errors, the number of errors is reported on the Create E-file screen, and each error is displayed in the
View
, Diagnostics
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