Binary Attachment ACA Explanation: Why Your Federal Return Was Rejected

Filing your federal tax return can sometimes result in an unexpected rejection, leaving you unsure of what went wrong. A common reason is missing or incorrect attachments related to the Affordable Care Act (ACA), required when claiming the Premium Tax Credit.

Understanding why your return was rejected and how to fix it can help avoid processing delays.

Binary Attachments for ACA Filings

When claiming the Premium Tax Credit, the IRS requires specific documentation to verify eligibility and ensure accurate calculations. One key requirement is a binary attachment—an electronic file submitted with your return when filing digitally. This typically includes Form 8962, which reconciles advance payments of the Premium Tax Credit with the actual credit amount based on your final income.

If this form is missing, corrupted, or improperly formatted, the IRS will reject the return. This often happens when tax software fails to generate the attachment correctly or when taxpayers manually enter information without properly linking the form. Some tax preparation platforms automatically generate the binary attachment, while others require users to upload it separately.

Reject Code F8962-070

This rejection code indicates that Form 8962 was either not included with the return or was improperly transmitted. The IRS uses this code to flag returns where the necessary reconciliation is missing, preventing processing until the issue is resolved.

A common reason for this rejection is when a taxpayer received advance payments of the Premium Tax Credit but did not submit Form 8962 to reconcile those payments with their actual eligibility. Without this form, the IRS cannot determine whether additional taxes are owed due to excess credit received or if a refund is due for unused credit.

This issue frequently arises when individuals enrolled in a Marketplace health plan do not realize they must file Form 8962, especially if they did not enter the information from Form 1095-A, which reports coverage details. If a return is filed jointly but only one spouse had Marketplace coverage, the IRS still requires Form 8962 to ensure the correct credit allocation.

Fixing Attachment Issues

To address a rejected return due to missing or incorrect attachments, review the IRS notice or the rejection message from your tax software. This will confirm whether the issue is related to Form 8962 and whether the IRS flagged a formatting or transmission error. Some software platforms provide detailed error descriptions, while others may only reference the rejection code, requiring further investigation.

If the form was missing, check Form 1095-A for accuracy before reattaching Form 8962. Discrepancies between the numbers reported on Form 1095-A and what was entered on the return can cause transmission failures. Incorrect monthly premium amounts or second lowest cost silver plan (SLCSP) values can lead to rejection, even if the form was attached. Manually verifying these details against the Marketplace statement ensures the correct premium tax credit amount.

Formatting errors can also prevent successful submission. Some tax software requires users to generate Form 8962 within the program itself, while others allow manual uploads. If uploading manually, ensure the file is in an acceptable format, such as a properly structured PDF. Some platforms may reject scanned images or improperly saved documents, leading to IRS rejection. Clearing cached data and refreshing the software before reattempting submission can resolve system-related glitches that interfere with attaching the form correctly.

Guidelines for Resubmission

Before resubmitting your return, confirm that all supporting documents align with IRS expectations to avoid repeated rejection. If discrepancies exist between reported figures and IRS records, such as income inconsistencies from Form 1099 or W-2 mismatches, resolving these issues before reattempting submission can prevent further delays.

Taxpayers should also verify that their filing status and dependents match previous IRS filings, as unexpected changes may trigger additional scrutiny.

Using IRS Free File or authorized e-file providers that support ACA-related forms can help ensure compliance with formatting and transmission standards. Some platforms offer built-in validation checks that flag potential errors before submission, reducing the risk of rejection. If filing through a tax professional, requesting a pre-submission review can help identify overlooked issues. Additionally, checking IRS Publication 974 for guidance on Premium Tax Credit calculations may clarify eligibility adjustments that impact acceptance.