Check a name control of up to 4 characters before e-file

• If the Entity Name Control field on screen 1 is left blank, EF Message 5300 produces, preventing e-file, according to Drake Software.
• If the trust's EIN begins with 20, 26, 27, or 45, then the trust obtained its EIN online, according to Intuit.
• Do not type dba in the name control.

The Internal Revenue Service defines the name control as consisting of up to four alpha and/or numeric characters Internal Revenue Service. This limit applies to the characters taken from the name on file. The rule is specific to the source named. Do not treat one publisher's rule as every firm's rule.

The name control is a short string used in e-filing. It is not the full legal name. It is a subset of the name. The subset is limited to four characters. The definition comes from the IRS page titled "Using the correct name control in e-filing corporate tax returns."

When you enter the name control, you are selecting up to four characters. The selection must match the name on file. If the selection does not match, the e-file may be rejected. The rejection happens because the name control is wrong. The wrong name control is a specific error. It is not a general filing error. It is a name control error.

For an individual who files under their own name rather than a business name, the IRS defines the name control as the first four letters of the last name. If you did not use a business name and instead used your individual name, your name control will be the first four letters of your last name, according to Internal Revenue Service. This rule applies specifically to individual names used for e-file identification. You take the last name exactly as it appears on the return and extract the first four characters. If the last name is longer than four letters, you stop at the fourth letter. For example, if the last name is "Smith," the name control is "Smit."

When the last name is shorter than four characters, the rule changes. If your last name has fewer than four characters, your name control is your last name, according to Internal Revenue Service. In this case, you do not pad the name with spaces or other characters. You enter the entire last name as the name control. If the last name is "Li," the name control is "Li." The length of the name control is therefore variable for individuals, depending on the length of the last name on file. It is up to four characters, but it can be fewer if the last name is short.

The ampersand (&) and hyphen (-) are the only special characters allowed in the name control, according to Internal Revenue Service. When a client’s legal name includes these symbols, keep them in the four-character string. If the name uses a different punctuation mark, such as a period or apostrophe, the IRS page does not list it as an allowed special character for the name control.

Spaces or blanks are not part of a name control, according to Internal Revenue Service. This rule applies when you build the four-character string from the name on file. If a name has a space between words, you do not count that space as one of the four characters. For example, the name "The Willow Co." produces the name control "WILL," according to Internal Revenue Service. In this case, the word "The" is dropped, and the first four letters of the remaining name are used.

For corporate returns, do not include "dba" as part of the name control, according to Internal Revenue Service. The IRS page for corporate tax returns specifically notes that "dba" is excluded from the name control.

When you type the name control into your e-file software, check for these specific exclusions: * Ampersands and hyphens: Keep them if they appear in the legal name. * Spaces: Remove them entirely; they do not count toward the four-character limit. * The word "dba": Do not type it.

For trusts, how the Employer Identification Number was obtained can determine which name characters form the control. For estates, the rule focuses on the decedent. An estate name control is the first four characters of the deceased individual's last name, according to Drake Software.

If the EIN was requested on the internet, derive the name control from the 1st 4 characters of the name of the estate or trust, according to Thomson Reuters. This guideline applies to trusts that used the online application process.

Drake Software specifies a narrower condition for online trusts. Trusts that applied for their EIN online and have an EIN that begins with 20, 26 or 27, the name control is the first four characters of the first name of the trust, according to Drake Software.

Intuit provides a list of prefixes that indicate an online EIN. Follow the guide for the software in use and apply that guide's own prefix rule.

For numbered trusts and GNMA Pools, derive the name control from the 1st 4 digits of the trust number, according to Thomson Reuters. This rule replaces the name-based derivation for these specific entity types.

When you encounter a trust, check the first two digits of the EIN. If the prefix is 20, 26, or 27, Intuit says the trust obtained its EIN online. If the prefix is 45, Intuit identifies it as online.

Picture a last name of 8 letters. Keep the first 4 and stop. Picture a last name of 3 letters. Enter those 3 letters and add nothing. Picture a business name with 1 space between the words. That space is not one of the 4 characters. Keep an ampersand or a hyphen that falls inside the 4 characters. Leave the word dba out.

The table below summarizes the specific rules and reject codes from each publisher. Each row cites the source directly.

The Internal Revenue Service defines the individual name control as the first four letters of the last name when no business name is used, according to Internal Revenue Service. For corporate returns, the name control consists of up to four alpha and/or numeric characters, according to Internal Revenue Service.

Drake Software notes that if the Entity Name Control field on screen 1 is left blank, EF Message 5300 produces, preventing e-file, according to Drake Software. If the incorrect Entity Name Control is entered, and the return is e-filed, the IRS will reject the fiduciary return with reject code: R0000-901-01, according to Drake Software. For trusts that applied for their EIN online and have an EIN that begins with 20, 26 or 27, the name control is the first four characters of the first name of the trust, according to Drake Software. A separate Drake page notes a 1065 return getting rejected (R0000-922) for having the wrong Name Control, according to Drake Software.

Verify the name control against the source document before sending the return. The specific consequences of errors vary by form and entity type, so check the exact field and code for your client’s situation. If the return is rejected, read dates after an e-file rejection. Before you sign the return, read preparer duties before signing a return. Read signature rules before you e-file when you reach the signature step.

Check for blank fields on fiduciary returns This applies to the product described in "Drake Tax - 1041: Name Control Guidelines, EF Message 5300, & IRS Reject R000-901-01." Check that the field is populated before transmission to avoid this specific message.

Verify the correct characters for fiduciary returns This rule is tied to the "Drake Tax - 1041: Name Control Guidelines, EF Message 5300, & IRS Reject R000-901-01" page. Compare the four characters you entered against the name on file to prevent this rejection.

Check partnership returns for specific reject codes A 1065 return getting rejected (R0000-922) for having the wrong Name Control is documented in the "Drake Tax - 1065: Name Control Reject R0000-922" page, according to Drake Software. This code is distinct from the fiduciary reject code mentioned above.

Review entity type changes For a change in entity type, complete Form 8832 and transmit it with the return, according to Drake Software. This instruction appears in the "Drake Tax - 1065: Name Control Reject R0000-922" context. If your client changed entity types, verify that Form 8832 is included with the return before you transmit.

Action step Before the next e-file, write the four-character name control you plan to send and the page you took the rule from.

How many characters can a name control have?

The name control is limited to a maximum of four characters.

Which special characters are allowed?

Only two special characters are permitted in the name control field. The ampersand (&) and the hyphen (-) are the only allowed special characters according to Internal Revenue Service. No other punctuation marks are listed as acceptable.

What happens if the fiduciary name control is blank?

Leaving the Entity Name Control field blank on screen 1 triggers a specific error message. According to Drake Software, this action produces EF Message 5300. This message prevents the e-file from proceeding.

How is an estate name control built?

The name control for an estate is derived from the deceased individual's name. Specifically, it consists of the first four characters of the deceased individual's last name according to Drake Software.

How does the Drake Software online trust rule compare with the Thomson Reuters internet rule?

Drake Software takes the first four characters of the trust name for an online EIN beginning with 20, 26 or 27, while Thomson Reuters takes the 1st 4 characters of the estate or trust name when the EIN was requested on the internet.