Understanding and Responding to AIR Error Codes for Name/SSN Mismatches

Understanding and responding to AIR error codes for name/SSN mismatches is essential for employers that file Affordable Care Act (ACA) Information Returns electronically. Employers must understand and respond to Affordable Care Act (ACA) Information Returns (AIR) error codes to avoid costly penalties and ensure regulatory compliance. When a name and Social Security Number (SSN) mismatch occurs during electronic filing, the IRS returns an accepted with errors status, signaling that data for that employee was not recorded. The IRS no longer provides a good-faith waiver for accuracy, and unresolved errors can lead to penalties.

To avoid penalties, employers must demonstrate reasonable cause and that they acted in a responsible manner by following specific solicitation steps to correct mismatched information. The attorneys at Monty & Ramirez LLP can help your business navigate the intersection of ACA compliance, employment law, and immigration, and can advise on legally compliant procedures for notifying employees. We can help employers navigate the intricate legal landscape surrounding these error codes to protect both the company from fines and the employee from undue hardship.

Common AIR Error Codes for Mismatches 

The ACA AIR system uses specific error codes to notify employers when employee names or Taxpayer Identification Numbers (TINs/SSNs) on Forms 1094-C and 1095-C do not match IRS records. When a filing is “Accepted with Errors,” employers must download the error data file to identify these specific codes: 

• AIRTN500 (TIN validation failed): The most frequent error; it indicates an individual’s name and SSN combination is inconsistent with IRS/SSA databases.
• 1095C-010-01: Specifically identifies that the employee’s name or SSN in the “EmployeeInfoGrp” (Part I of Form 1095-C) does not match the database.
• Shared-008: Indicates a mismatch for a covered individual (spouse or dependent) listed in Part III of the form.
• AIRBR1003: Flags that an employee’s SSN is invalid, often due to sequential numbers or all identical digits.

An AIR error message is not an official penalty notice, but ignoring it can trigger one if the IRS later determines the filing was incomplete or inaccurate. 

Immediate Next Steps 

Compare the error report against your internal payroll and HR records. Look for common mistakes such as typos, transposed numbers, or name changes due to marriage or divorce that were not updated with the SSA. If internal records match the rejected filing, you must contact the employee to verify their information against their Social Security card. IRS Publication 1586 outlines a three-solicitation rule for employers. 

You must document your initial request and up to two annual follow-ups if the mismatch persists to demonstrate a good-faith effort and avoid penalties. 

An attorney can help draft standard written policies for handling SSN mismatches to ensure consistent application and prevent discrimination claims. If the IRS issues a penalty notice, an attorney can help draft a Reasonable Cause waiver request, documenting that the business followed all necessary solicitation steps, and ensure that the documentation of your resolution efforts is sufficient to withstand a Department of Labor or IRS audit.

Get Legal Help from Our Attorneys to Understand and Respond to AIR Error Codes for Name/SSN Mismatches

Repeatedly ignoring and failing to take reasonable steps to resolve persistent AIR Error Codes for Name/SSN Mismatches can trigger significant IRS penalties for incorrect information returns. Understanding and responding to AIR error codes for name/SSN mismatches is critical to preventing these outcomes and mitigating claims of discrimination or unfair termination, as these notices do not automatically mean an employee is unauthorized to work and require careful, legally compliant handling.

A proper response demonstrates diligence and helps avoid deeper IRS investigations or issues related to other tax filings. Correct reporting also ensures that employees’ earnings are properly credited for future Social Security retirement and disability benefits. Contact the legal team at Monty & Ramirez LLP to request your case consultation.