When electronically filing ACA Forms 1095-B or 1095-C, you may encounter an error message such as:
This is a common IRS e-file error tied to your Transmitter Control Code (TCC) and how it is registered in the IRS system.
What Publication 5165 Says
IRS Publication 5165 explains the cause of this issue:
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Verify that your Transmitter Control Code (TCC) (included in the ACA Business Correlation ID) is valid.
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Ensure that your TCC is in “Active” status and authorized to transmit Information Returns.
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If the IRS rejects your submission with Header-005 or Header-006 (SysError 1 or 2), wait 48 hours before retransmitting.
Why This Error Happens
This error usually means:
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Your TCC is not active in the IRS system.
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The IRS has not fully updated its system to recognize your TCC.
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You attempted transmission too soon after account setup or renewal.
The data file and manifest file are typically valid and well-formed, so the problem is not usually with your XML formatting.
How to Fix SysError – 2, Header-005, Header-006
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Step 1: Log into IRS e-Services.
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Step 2: Check your TCC status. Ensure it is marked as Active.
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Step 3: If your TCC was recently activated, wait 24–48 hours and try again.
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Step 4: If the error persists, contact the IRS AIR help desk for assistance.
Best Practices to Avoid This Error
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Always confirm your TCC status before filing.
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Avoid filing immediately after setting up or renewing your TCC.
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Use IRS-compliant ACA 1095 software that automatically validates your TCC.