The new ACA Information Returns (AIR) Schema and Business Rules for tax year 2023 and ACA Assurance Test System (AATS) Scenarios have been released.
AIR Schema and Business Rules
This version shows no changes from the schema and business rules from tax year 2022.
What is AIR Schema?
The AIR schema is a structured definition of the data format required for electronic ACA submissions using the IRS AIR system. This is based on an XML structure.
Some key aspects of the AIR system and related business rules include:
- Form Types: Forms 1094-B, 1095-B, 1094-C, and 1095-C.
- Transmission Method: The AIR system is set up to receive submissions through the ACA Assurance Testing System (AATS) and the Production System.
- Error Handling: The IRS provides acknowledgments for received transmissions, indicating whether the submission was accepted or rejected. If a filing is rejected, the acknowledgment will typically provide error codes to help filers correct their submissions.
- Testing Phase: Before entities can submit data to the Production System, they often must go through a testing phase with AATS to ensure their data adheres to the AIR schema.
- Submission Deadlines: Like all tax-related filings, there are strict deadlines for submissions, with potential penalties for late or incorrect filings.
The IRS provides the detailed AIR schema, including the exact XML structure, definitions, valid values, etc., along with the comprehensive business rules, in their publications and guides. These details can be extensive and specific.
AATS scenarios refer to the specific test scenarios provided by the IRS for the ACA Assurance Testing System (AATS). These scenarios are designed to help transmitters and issuers of ACA Information Returns ensure that their software and data transmission methods are compliant with IRS requirements before they make actual submissions in the production environment.
Each AATS scenario represents a potential real-world situation or data configuration. They are constructed to validate both the content of the data and the electronic transmission process. By successfully completing these scenarios in the AATS testing environment, entities can be more confident that their submissions will be accepted when they transmit real data to the IRS.
The IRS has recently made the AIR Schema and Business Rules for the 2023 tax year available, accompanied by the ACA Assurance Test System (AATS) Scenarios. Although this year’s version remains consistent with the 2022 schema and business rules, it’s crucial for entities involved in electronic ACA submissions to familiarize themselves with the specifics.
By attentively navigating these resources and ensuring adherence to the provided guidelines, entities can significantly reduce potential submission errors and ensure the smooth processing of their ACA Information Returns.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.