Occasionally an e-filed return will have an Alert Code sent with the acknowledgement, and both accepted and rejected returns may also contain an alert.
An Alert informs both the preparer and the taxpayer of one these things:
- there may be a delay processing the tax return due to more information being needed;
- the tax return is lacking information that may result in a reject in a future processing year.
For example, an individual tax return can receive this alert code if there are additional federal tax withholdings indicated but unsupported by a tax document with an EIN:
Alert Code: F1040-473 | Category: Missing Data | Severity: Alert
On your return, a claim for Other Forms Withholding, line 25c, did not have an EIN present on the Other Withholding Statement. The IRS may contact you for validation of the requested Other Withholding claim. Please visit https://www.irs.gov/newsroom/misleading-social-media-advice-leads-to-false-claims-for-fuel-tax-credit-sick-and-family-leave-credit-household-employment-taxes-faqs-help-address-common-questions-next-steps-for-those-receiving-irs and the line 25c form instructions for additional information.
The alert will also show "Additional Information" along with a number. This number is the amount shown on Form 1040 under Other Withholdings. Tax withholdings are always or should be reported to the taxpayer on a tax document, such as a W-2 series or 1099 series document, as well as Forms 1042-S, 2439, 8288-A, and 8805, so this alert tells the taxpayer that the IRS may reach out for further information to determine the source of the withholdings. The primary sources for this alert are either an amount plugged in as an other withholding or excess Medicare tax reported on Form 8959.
An S corp return that's missing the signing officer's social security number will receive this alert:
Alert Code: R0000-223 | Category: Missing Data | Severity: Alert
'SSN' in 'SigningOfficerGrp' in the Return Header must have a value.
The IRS recommends including the signing officer's SSN in the heading information of an e-filed Form 1120-S. (Since the return accepted, nothing more needs to be done with it, and amending the return solely for the purpose of adding the SSN isn't necessary.)
Similarly, a Mississippi return that includes passthrough income or loss from a K-1 but doesn't have a copy of the K-1 attached to the return will receive this alert:
Alert Code: XMS00-106 | Category: Acceptance Validation | Severity: Warning
Partnership, S Corporation, Estate and/or Trust Income/Loss was claimed but no Mississippi K-1s were transmitted
Mississippi Form 80-108 indicates, "Attach Mississippi K-1s as applicable". Ideally, a PDF copy of the K-1 is attached to the Mississippi tax return. If it's missing the return will receive this alert code. The taxpayer may possibly receive a letter from the state requesting a copy of the K-1.
Delaware has an alert code when the refund is greater than a particular threshold:
Alert Code: 055 | Category: Review Alert | Severity: Alert
ELF RETURN - REFUND > APPROVAL THRESHOLD
The state will probably request additional information from the taxpayer.
Bottom line: an alert is not a reject.