ThresholdRule 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
Submission. The threshold check runs per submission, after the form rules.
What happens
A Reject rule stops what it applies to. A transmission rule rejects the whole transmission; a submission or form rule rejects that submission, which is one issuer and one form type, while other submissions in the same transmission can still be accepted. A rejected submission is not a filed return: fix it and send it again.
Why it fires
- One field wrong on most records, such as a missing code or an amount in the wrong element.
- A bad mapping in software that affects every form of a type.
How to fix it
Treat every report error as one to fix. Check a file before you send it, so a systematic mapping error is caught on the first record rather than in a rejected submission.
What the IRS publications say
- The rules with this severity are labeled "Report Error and Reject if Over Threshold" in the business rules; the IRS does not publish the percentage. (IRIS business rules, ThresholdRule)
- When a submission is rejected for going over a threshold, the error file lists every rule that was broken plus a generic Threshold Rule error for each threshold exceeded. The transmitter must fix all the business rule errors and send a replacement for the rejected submissions. (Pub 5718, section 6.2.1)
Check a file before you send it. TIN Comply's free IRIS 1099 File Checker runs an IRIS XML or CSV file against the IRS business rules in your browser.
Questions people ask
Is a return with this error filed?
No. The submission was rejected and has to be fixed and sent again.
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.