Btw, talraza, I've have been meaning to write a new post related to MeF files, with which it seems you are the most familiar poster here on BH! I'm curious to know exactly what data gets transmitted when I e-file a 1040 form. E.g. if I get a 1099 and enter it into the software (taxact in this case)....what if the EIN is accurate but the address is not correct. For example, for the same EIN Vanguard changed the address that appears on the form. Does the IRS receive the address I input in my software? Or simply the EIN? Anyway, a discussion for another post I think.
talraza wrote:[this is to tag talraza]
Makefile wrote:Are you talking about a 1099-R? I don't believe any other kinds of 1099s get transmitted.
My question related to ALL the various 1099s, 1098s, W2s and other supporting documentation I enter into my tax software. For example, I've only ever used taxact for my personal returns. It won't allow me to e-file unless I enter an EIN for just about any 1099. It also require me to enter addresses for the sender, or it won't e-file. I fail the alerts.jebmke wrote:I’ve done hundreds of returns over the years and never enter EIN or address for Divs and Ints. Rs, Misc, NEC and some other minor ones I do.
In fact, for our personal Divs I don’t even put in the institution name. I use:
Mrs JEB Brok
Once I associate a certain address with an EIN (even on previous year returns), I only have to enter the EIN on subsequent forms and it pulls the address for me.
So I'm wondering what actual data gets transmitted to the IRS? Is this a taxact requirement? Or an IRS requirement? And should I just enter dummy values for everything? I would save a lot of time if I just entered 12-3456789 for each 1099?
What about mortgage statements? Do I have to enter the year the loan was taken out, the loan balance, etc? Because the only data used on the return is the mortgage interest.
The IRS has this to say about the MeF format:
I was able to dig into the details of all the data elements required for 1099s reported directly to the IRS by payors and can see that ein, address, and all the other fields on the form are sent to the IRS. So I'm wondering what happens when I enter that same 1099-NEC (or any other form) into my personal return. Does the supporting info get transmitted?https://www.irs.gov/e-file-providers/modernized-e-file-overview wrote:Each line or data element on every IRS form is given an XML name tag.
Every instance of supporting data is defined and given an XML name tag.
IRS and/or contractors use the name tags to create XML schemas.
I have only one data point for this. I once filed a return that had a schedule H. My software pre-filled the payor on the return as the same person filing the 1040. E.g. Anne Smith and Anne's SS#. However, Smith was a new married name. The W2 that was issued to the household employee was in the name of Anne Jones (maiden name). The IRS rejected the return because the name of at the top of the schedule H did not match their records. When I changed the name on the Schedule H to the maiden name, the return was accepted. So I know that the name on the Schedule H was a separate data element transmitted to the IRS.
Actually, I just did a test in taxact. The software requires an EIN and address on W2s received. But does NOT on 1099-INTs, DIVs, NECs, and 1098s. So maybe that answers part of my question. I seem to always start with the W2s, and the EIN and address fields are clearly marked as required (by background color) and I can't leave the form until they are complete. So when I move onto other documents I just assumed the same data was required. But at least it's not marked as such in the software. Interesting! This is going to save me time (next year ha ha, I've already entered that data for this year)! Although, it's nice to have a full "backup" of my tax documents in the software.
But I still very much would like to learn what gets transmitted. Perhaps the non-required data IS transmitted but it's not checked/required by the IRS?