SHAREDIRFORM023 is an error every filer can get when sending information returns to IRIS, whether through the free IRIS Taxpayer Portal or through filing software. IRIS reports it on the acknowledgment by rule number.
What the rule checks
Where it sits in the file
Each form record. Shared form rules run on every return in a submission, whatever the form type. A form rule that rejects stops the submission the form is in.
What happens
The return is accepted with errors. It counts as filed, and the acknowledgment lists the record and the rule so you can review it and, where the data was wrong, file a correction.
Why it fires
- The payee never returned a W-9.
- A TIN that was on file but did not map to the export.
- A foreign payee reported on a 1099 instead of Form 1042-S.
How to fix it
A missing TIN is a missing-TIN penalty case and a backup withholding case: payments to a payee with no TIN are subject to 24% backup withholding. Solicit the TIN, keep the solicitation record, and file a correction when it arrives.
What the IRS publications say
- The IRS calls incorrect TINs, and the wrong name attached to a TIN, "some of the most common causes of information return errors," and says the issuer and recipient name, name control and TIN must match the IRS database. (Pub 5718, section 10.3)
- A name or TIN that is wrong on the recipient is fixed with a one-step correction: a record with corrected indicator 1 that points to the original. Records accepted with errors "are considered accepted by the IRS," and the IRS asks filers to make "every effort" to file corrections for them. (Pub 5717, sections 3.6.4 and 3.6.7)
- An error in the issuer's own name or TIN cannot be fixed with a correction. If a submission was accepted under the wrong issuer name or TIN, the issuer writes to the IRS (Internal Revenue Service, 230 Murall Drive, Mail Stop 4360, Kearneysville, WV 25430) with the issuer's name and address, the type of error including the incorrect name or TIN reported, the tax year, the correct issuer TIN, the TCC, the type of return, the number of payees, the filing method and whether federal income tax was withheld. (Pub 5717, section 3.6.7)
Questions people ask
Is a return with this error filed?
Yes. It was accepted with errors and counts as filed; review the record and correct it if the data was wrong.
Where does the rule come from?
From the IRS's business rules for IRIS, which it updates for each tax year. The description on this page is our own summary; your acknowledgment gives the rule number.