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Health Coverage Tax Credit reporting for TAA recipients
Summary ETA advised state workforce agencies about Health Coverage Tax Credit duties for eligible Trade Adjustment Assistance recipients in 2016 and about sending 2017 eligibility data to the IRS. It also offered an opportunity to request funding for costs of restoring the advance-credit option. ETA canceled this guidance in 2024 through TEGL 04-24 and UIPL 20-24.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 1-17
Date issued
October 25, 2016
Status
Rescinded
Canceled September 18, 2024 by TEGL 04-24 and the jointly issued UIPL 20-24, which list UIPL 01-17 in their attachment.
Status last verified October 24, 2026
Is this still the rule?
This document has been rescinded. Ezel checks what federal law requires today, under current federal labor law, and answers your situation with citations.
About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION UI – TRA/HCTC
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OUI/DUIO/DPM
Washington, D.C. 20210 DATE
October 25, 2016
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 1-17
TO: STATE WORKFORCE AGENCIES
TRADE ADJUSTMENT ASSISTANCE LEADS
FROM: PORTIA WU /s/
Assistant Secretary
SUBJECT: Health Coverage Tax Credit (HCTC) for Eligible Trade Adjustment Assistance
(TAA) Recipients and Alternative TAA (ATAA) and Reemployment TAA
(RTAA) Recipients.
1. Purpose. To advise State Workforce Agencies (SWAs) about their responsibilities related to
the HCTC program for Calendar Year (CY) 2016; provide guidance regarding state data
transmittals of eligible TAA and ATAA/RTAA recipients to the Internal Revenue Service
(IRS) for HCTC purposes for CY 2017; and to announce an opportunity for SWAs to request
funding to support the costs associated with the reinstatement of the advance credit option of
the HCTC program.
2. References.
The Trade Adjustment Assistance Reauthorization Act of 2015 (TAARA 2015), Title IV
of the Trade Preferences Extension Act of 2015 (Public Law (Pub. L.) No. 114-27),
enacted June 29, 2015, which amends the Trade Adjustment Assistance program under
the Trade Act of 1974, Pub. L. No. 93-618, and Section 35 of the Internal Revenue Code
(IRC);
The Trade Adjustment Assistance Extension Act of 2011 (Pub. L. No. 112-40), enacted
October 21, 2011;
The Omnibus Trade Act of 2010 (Pub. L. No. 111-344), enacted December 29, 2010;
Sections 1899A, 1899B, 1899C of Division B of the American Recovery and
Reinvestment Act of 2009 (Pub. L. No. 111-5), enacted February 17, 2009;
The Trade Adjustment Assistance Reform Act of 2002 (TAA Reform Act) (Pub. L. No.
107-210), enacted August 6, 2002;
Section 35 of the IRC of 1986, (26 U.S.C. 35);
Unemployment Insurance Program Letter (UIPL) No. 02-03, Health Insurance Tax Credit
for Eligible Trade Adjustment Assistance/Trade Readjustment Allowances (TAA/TRA)
Recipients;
UIPL No. 05-03, Health Insurance Tax Credit for Eligible Trade Adjustment
Assistance/Trade Readjustment Allowances (TAA/TRA) Recipients;
RESCISSIONS EXPIRATION DATE
None Continuing
UIPL No. 24-03, Implementation of the Advance Health Coverage Tax Credit (HCTC)
for Eligible Trade Adjustment Assistance/Trade Readjustment Allowances (TAA/TRA)
Recipients;
UIPL No. 33-03, Questions and Answers About Implementation of the Advance Health
Coverage Tax Credit;
UIPL No. 21-09, Health Coverage Tax Credit (HCTC) for Eligible Trade Adjustment
Assistance (TAA) Recipients;
UIPL No. 12-11, Health Coverage Tax Credit (HCTC) for Eligible Trade Adjustment
Assistance (TAA) Recipients - Expiration of the American Recovery and Reinvestment Act
of 2009 Provisions Expanding HCTC;
UIPL No. 07-14, Expiration of the Health Coverage Tax Credit (HCTC) for Eligible
Trade Adjustment Assistance (TAA) Recipients;
Training and Employment Guidance Letter (TEGL) No. 11-02, Operating Instructions for
Implementing the Amendments to the Trade Act of 1974 Enacted by the Trade Act of 2002
and Changes 1, 2, and 3;
TEGL No. 22-08, Operating Instructions for Implementing the Amendments to the Trade
Act of 1974 Enacted by the Trade and Globalization Adjustment Assistance Act of 2009,
and Change 1;
TEGL No. 16-10, Instructions for Phasing Out Changes to the Trade Act of 1974
Enacted by the Trade and Globalization Adjustment Assistance Act of 2009, and Changes
1 and 2;
TEGL No. 10-11, Operating Instructions for Implementing the Amendments to the Trade
Act of 1974 Enacted by the Trade Adjustment Assistance Extension Act of 2011 (TAAEA),
and Changes 1 and 2;
TEGL No. 5-15, Operating Instructions for Implementing the Amendments to the Trade
Act of 1974 Enacted by the Trade Adjustment Assistance Reauthorization Act of 2015
(TAARA 2015);
Training and Employment Notice (TEN) No. 15-13, Expiration of the Health Coverage
Tax Credit (HCTC) Program for Eligible Trade Adjustment Assistance (TAA) Recipients
and Eligible Alternative TAA (ATAA/RTAA) Recipients or Eligible Pension Benefit
Guaranty Corporation (PBGC) Recipients; and
TEN No. 25-15, Reinstatement of the Health Coverage Tax Credit (HCTC) for Eligible
Trade Adjustment Assistance (TAA) Recipients and Alternative TAA (ATAA) and
Reemployment TAA (RTAA) Recipients.
Standard Grant Terms and Conditions - https://www.doleta.gov/grants/resources.cfm
3. Background. TAARA 2015 reinstated the HCTC program through 2019. The HCTC
program has gone through multiple iterations in the TAA statutory reauthorizations. Title II
of the TAA Reform Act created the initial HCTC Federal income tax credit, which subsidizes
certain health insurance coverage for eligible PBGC pension recipients as well as individuals
in the TAA program identified as:
Eligible TAA recipients, and
Eligible ATAA/RTAA recipients.
An “eligible TAA recipient” is defined as an individual who receives Trade Readjustment
Allowances (TRA) for any day of the month (and the next month following the last month
the individual meets the definition) or who would be eligible to receive TRA but for the fact
that s/he has not exhausted his or her unemployment compensation (UC) entitlement. An
“eligible ATAA/RTAA recipient” is defined as an individual who is a worker under section
246(a)(3)(B) of the Trade Act and who is participating in the program established under
paragraph (a)(1) of that section for a month and is receiving a benefit under section 246(a)(2)
of the Trade Act for that month. An individual will continue to be treated as an eligible
ATAA/RTAA recipient during the first month that such individual would otherwise cease to
be an eligible ATAA/RTAA recipient.
UIPL Nos. 02-03; 05-03; 24-03; 33-03; 21-09; 12-11; and 07-14 provided guidance,
instructions, and information to the SWAs about the HCTC program.
The American Recovery and Reinvestment Act of 2009 (Recovery Act) changed the name of
ATAA to “reemployment trade adjustment assistance” (RTAA), and changed the substantive
requirements for the benefits available under section 246(a)(3)(B) of the Trade Act. As
explained in Section J of Attachment A of TEGL No. 22-08, the category of individuals
known as the “eligible alternative TAA recipients” includes both ATAA and RTAA
recipients.
The Recovery Act also provided a Special Rule to amend the definition of an “eligible TAA
recipient” for purposes of the HCTC.
The Special Rule provides that an individual is an eligible TAA recipient for purposes of the
HCTC if the individual:
Has a break in approved training that exceeds 30 days, and the break falls within the
eligibility period for receipt of TRA provided under the Trade Act, or
Is receiving UC (which includes regular UC, Extended Benefits (EB), and any Federal
supplemental compensation (as defined at 20 CFR 617.3(oo))) for any day of such month
and who would be eligible to receive TRA under section 231 of the Trade Act (except
that s/he has not exhausted UC) for such month, without regard to the enrollment in
training requirements.
Subtitle B of the Trade Adjustment Assistance Extension Act of 2011 extended the HCTC
program as provided by the Recovery Act amendments, except that it reduced the credit from
80 percent to 72.5 percent. That HCTC program was in effect through 2013, when it expired.
TAARA 2015 provides for the same percentage credit (i.e., 72.5 percent) for the HCTC that
was in effect on December 31, 2013. Further, TAARA 2015 provides retroactive HCTC to
eligible TAA and ATAA/RTAA recipients who would have been qualified to receive the
HCTC for the period from January 1, 2014 through June 28, 2015, and prospectively from
the date of enactment of TAARA 2015 (June 29, 2015) to individuals who are qualified for
the HCTC.
The IRS has begun an outreach effort to inform individuals of the reinstatement of the HCTC
and has posted information on the IRS website at www.irs.gov/hctc and has issued other
related guidance, forms, and instructions. The Department of Labor’s Employment and
Training Administration (ETA) issued TEN No. 25-15 to provide guidance to SWAs
regarding the documentation that individuals will need to provide to confirm the status as an
eligible TAA or ATAA/RTAA recipient to apply for the HCTC for CYs 2014 and 2015.
Before the expiration of the HCTC on December 31, 2013, SWAs transmitted the records of
eligible TAA and ATAA/RTAA recipients to the IRS via the Unemployment Insurance (UI)
Interstate Connection Network (ICON). Upon receipt of the SWA’s information, the IRS
determined whether the eligible TAA and ATAA/RTAA recipients were also eligible for
HCTC. ICON will be used again to transmit the information to the IRS.
ICON is a telecommunications network used by SWAs for UI purposes. ICON is managed
through a cooperative agreement between ETA and the Maryland Department of Labor,
Licensing, and Regulation (MD DLLR). MD DLLR has a contract with a vendor, Xerox
State & Local Solutions, Inc. (Xerox), to manage the day-to-day operations of ICON.
4. Documentation of Eligible TAA or ATAA/RTAA Recipient Status Needed to Apply for
HCTC for CY 2014, 2015, and 2016. The IRS has informed ETA that in seeking HCTC,
individuals who filed or amended their prior year tax returns (such as for 2014 and/or 2015)
or submit 2016 tax returns will need to provide proof of their eligible TAA or ATAA/RTAA
recipient status with their Form 8885, Health Coverage Tax Credit. The IRS has requested
that states provide proof of eligible TAA or ATAA/RTAA recipient status to taxpayers
needing such proof for submission with their tax returns.
Proof of eligible TAA or ATAA/RTAA recipient status for each tax year must be provided
separately (i.e., proof of eligible TAA or ATAA/RTAA recipient status for each tax year).
States need to confirm only that the individual received a payment for any one day/week in
any one month during the calendar year. The IRS will determine whether the individual is
eligible for the HCTC. The following information will provide proof of an individual’s
status as an eligible TAA or ATAA/RTAA recipient.
Date:
Eligibility Year: [Year individual was an eligible TAA or ATAA/RTAA recipient]
SSN:
First Name:
Last Name:
Claimant Address:
Please refer to a sample letter/document provided in Attachment A in TEN No. 25-15.
5. HCTC Eligibility Beginning in CY 2017 and Thereafter. TEN No. 25-15 stated that the
IRS will have the advance credit option available to taxpayers beginning June 2016.
However, the IRS has delayed the implementation of the advance credit option, so that it will
be available beginning January 2017. Once the advance credit option is in effect, state
agencies should advise “eligible TAA recipients” and “eligible ATAA/RTAA recipients” that
as taxpayers they have an additional benefit.
The advance credit option will provide 72.5 percent of the payable premium for a qualified
health insurance plan as a monthly credit. This amount will be forwarded by the IRS to the
qualified health insurance plan on behalf of the individual receiving the advance credit. The
taxpayer will be responsible for the payment of the 27.5 percent of the payable premium on a
monthly basis. However, taxpayers may choose instead to continue to pay 100 percent of the
premium and claim the credit when filing the yearly tax return. Until the advance credit
option is implemented in January 2017, and taxpayers elect that option, in general, taxpayers
must continue to pay 100 percent of the payable premium for qualified health insurance.
(However, the IRS is implementing a limited interim process during the summer of 2016 for
making advance payments in 2016. For more information, see www.IRS.gov/hctc. This is
different than the advance credit option described elsewhere in this document.)
Taxpayers should be fully informed that to avail themselves of the advance credit option, they
should follow the IRS instructions provided at www.irs.gov/hctc. Taxpayers must enroll in
the advance credit option and receive confirmation by the IRS of their enrollment in the
program before the advance credit option is in effect for them. Upon enrollment, the
taxpayer will receive detailed instructions from the IRS on the procedures to follow to claim
the monthly credit. Until such time as a confirmation notice of the enrollment is provided by
the IRS, the individual taxpayer is responsible for paying 100 percent of the health insurance
premium. The IRS is currently working on the details for this process and, once completed,
such information will be provided on the HCTC website.
6. HCTC Data Transmission through ICON. Effective January 1, 2017, SWAs will identify
and transmit to the IRS, via ICON, the information on all individuals who meet the
designation of “eligible TAA or ATAA/RTAA recipients.”
ICON will remain as the communications vehicle through which SWAs will transmit
information to the IRS for HCTC purposes. Attachment A of this UIPL provides an
overview of ICON HCTC transmission process.
SWAs must use the HCTC application to transmit through ICON the monthly lists of eligible
TAA and ATAA/RTAA recipients as well as daily updates containing changes to the initial
monthly list. In order to be prepared to make such transmissions, SWAs must complete, by
December 31, 2016, their HCTC application certification process, conducted by Xerox,
before using the HCTC application for ongoing transmission of HCTC data through ICON to
the IRS.
SWAs that are able to reactivate their HCTC application used prior to the 2014 expiration of
the HCTC program must use that HCTC application to transmit the lists through ICON to the
IRS. SWAs that are not able to reactivate their HCTC application used prior to the 2014
expiration of the HCTC program must program and implement the applications using the two
attachments provided with this advisory.
SWAs must follow the steps outlined below for successful transmission of HCTC data to the
IRS over ICON:
Contact Xerox at 800-327-9250, and select the phone menu option 2 to obtain
information required for making the necessary technical connections for transmitting the
HCTC data file through ICON. Data files can be transmitted through ICON using any of
the available data exchange protocols, such as Transmission Control Protocol/Internet
Protocol/Network Job Entry (TCP/IP/NJE), File Transfer Protocol Secure (FTPS), and
web services. Additionally, each SWA must provide Xerox the name, title, and phone
number of a person that the IRS and Xerox may contact for any questions regarding the
data transmission.
Once the connection process is completed, each SWA must send the approved test file
through ICON, so that Xerox can validate and certify that the data file meets the required
Record Format provided in Attachment B. The validation of deployment will ensure that
the entire process is complete, including the issue resolution portion. The existing IB-13
application (discussed in Attachment A) will be used to resolve any problems or issues
with the data sent to the IRS.
Once the SWA’s HCTC system is validated and certified by Xerox, the transmission of
the data files may be initiated.
7. Available Grant Funding. States may apply for HCTC Infrastructure Dislocated Worker
Grants (HCTC Infrastructure DWGs) to cover administrative costs for activities described in
this advisory, notifying workers, public education about the benefit, staff training, and
outreach activities related to the reinstatement of the advance credit option of the HCTC
program. Requests for up to $500,000 per state will be accepted, and the Department expects
that the majority of SWAs will request funds prior to the January 1, 2017, implementation
date. If funding greater than $500,000 is required, SWAs may submit a justification to the
Department for consideration. The grant period of performance will be from the date of the
award (no earlier than October 1, 2016) through December 31, 2019, or the total expenditure
of the awarded funds, whichever is earlier. Quarterly financial and narrative reports will be
required, as described below. All grant funding under this UIPL is subject to the grant terms
and conditions for 2016 found at https://www.doleta.gov/grants/resources.cfm.” SWAs must
submit requests for funding according to the application procedures below.
8. Application Submission Requirements. Applications submitted requesting funding for
administrative costs in response to this UIPL must contain four separate and distinct parts:
(1) SF-424 “Application for Federal Assistance;” (2) SF-424A Budget Information Form; (3)
Budget Narrative; and (4) Project Narrative. It is each state’s responsibility to ensure that the
funding amount requested is consistent across all parts and sub-parts of the application.
Applications for funding under this project must be submitted through www.grants.gov.
Applications will be accepted on rolling basis as long as funds remain available or until
September 30, 2019. To submit the required documents, States must follow the “Apply for
Grants” link on grants.gov, and download the links for the grant application package. States
should not follow the “Find Grants” link, as this is not a competitive funding opportunity.
A. SF-424, “Application for Federal Assistance”
A state must complete the SF-424, “Application for Federal Assistance” OMB Control
No. 4040-0004.
An SF-424 electronically submitted through grants.gov constitutes the official signed
document. Item #11 must include the HCTC Catalog of Federal Domestic Assistance
Number, (17.276). Upon confirmation of an award, the individual signing the SF-424 on
behalf of the applicant is considered the Authorized Representative of the applicant. As
stated in block 21 of the SF-424 form, the signature of the Authorized Representative on
the SF-424 certifies that the organization is in compliance with the Assurances and
Certifications form SF-424B (available at
http://apply07.grants.gov/apply/forms/sample/SF424B-V1.1.pdf). You do not need to
submit the SF-424B with the application.
B. Project Budget
A state must complete the SF-424A Budget Information Form OMB Control No. 4040-
0006.
C. Budget Narrative
The budget narrative must provide a description of costs associated with each line item on
the SF-424A, demonstrating how grant funds will be used. It must also include a
description of leveraged resources provided (as applicable) to support grant activities.
Note that the SF-424, SF-424A, and budget narrative must include the entire Federal
grant amount requested (not just for one year). Do not show leveraged resources on the
SF-424 and SF-424A. A state should describe leveraged resources in the budget
narrative. The requested Federal grant amount listed on the SF-424, SF-424A, and
budget narrative must be the same. The funding amount included on the SF-424 will be
considered the official funding amount requested if any inconsistencies are found.
D. Project Narrative
The Project Narrative must demonstrate the state’s capability to implement the grant
project in accordance with the provisions of this announcement. It must provide a
comprehensive framework and description of all aspects of the proposed project. It must
be succinct, self-explanatory, and well-organized so that reviewers can understand the
proposed project. Examples of activities for which funding may be requested include
(but are not limited to): 1) outreach to notify eligible individuals regarding the
availability of the advance credit option of the HCTC program; 2) process improvements
to ensure eligible TAA and ATAA/RTAA recipients are correctly identified; 3)
development/implementation of information technology systems related to the
requirements this advisory; and 4) HCTC staff training.
E. Reporting
Each grant recipient is required to submit an ETA 9130, Quarterly Financial Status
Report (OMB Control Number 1205-0461) until such time as all funds have been
expended or the grant period has expired. Quarterly reports are due 45 days after the end
of each calendar year quarter. On the final Financial Status Report, grant recipient must
include any sub-award amounts so that applicable final indirect costs may be calculated.
The ETA 9130 report must be submitted using the Department’s Online Electronic
Reporting System. Specific instructions on how to use that system will be provided after
the award.
A prospective HCTC DWG applicant webinar to outline these requirements will be provided
in the upcoming weeks. Information on the specific date and time will be disseminated via e-
mail to state workforce offices.
If applicants encounter a problem with grants.gov and do not find an answer in any of the
other resources, call 1-800-518-4726 or 606-545-5035 to speak to a Customer Support
Representative or email [email protected].
9. OMB Information Collection. OMB Information Collection No 1225-0086, expires May
31, 2019. According to the Paperwork Reduction Act of 1995, no person is required to
respond to a collection of information unless such collection displays a valid OMB control
number. Public reporting burden for this collection of information is estimated to average 20
hours per response, including time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments about the burden estimated or any other aspect of this
collection of information, including suggestions for reducing this burden, to the U.S.
Department of Labor, to the attention of the Departmental Clearance Officer, 200
Constitution Avenue NW, Room N1301, Washington, D.C. 20210. Comments may also be
emailed to [email protected]. PLEASE DO NOT RETURN THE
COMPLETED APPLICATION TO THIS ADDRESS. SEND IT TO THE SPONSORING
AGENCY AS SPECIFIED IN THIS ANNOUNCEMENT.
10. Action Requested. SWAs are requested to take the necessary actions to transfer the
necessary information to the IRS to support the reinstatement of the HCTC as described in
this UIPL. If SWAs are interested in applying for HCTC Infrastructure DWG funding, they
must follow the provisions outlined in this UIPL and its attachments. SWA Administrators
are also requested to provide this information to appropriate staff.
11. Inquiries. Please direct all inquiries regarding HCTC implementation to the appropriate
Regional Office. Inquiries concerning the HCTC Infrastructure DWG funding opportunity
submission process should be directed to Chanta Ferrell, Grants Management Specialist at
[email protected].
12. Attachments.
Attachment A - HCTC ICON System Overview & Documentation
Attachment B - ICON Reporting Format for Reporting Data to the HCTC
Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2016/UIPL_01-17-Attachment-A_Acc.pdf)
Attachment A
Health Coverage Tax Credit
Interstate Connection Network (ICON) System Overview & Documentation
1. Data Transmission: State Workforce Agencies (SWAs) will transmit to the Internal Revenue
Service (IRS) the required data certifying Trade Adjustment Assistance (TAA), Alternative
TAA, and Reemployment TAA (ATAA/RTAA) eligible individuals in the approved file format
(Attachment B) through the Interstate Connection (ICON) using the following procedures.
As soon as the SWA recognizes that an individual meets the eligible TAA or ATAA/RTAA
recipient criteria for the first time within a given month, the SWAs must transmit the eligible
TAA or ATAA/RTAA recipient’s record to the IRS. Each SWA will need to:
Create a monthly list of eligible TAA and ATAA/RTAA recipients and update the list on a
daily basis;
On the first day of the month, transmit to the IRS the monthly list of individuals determined
qualified. On each subsequent day of the month, transmit any changes to the initial monthly
list of eligible individuals;
Program its system to ensure that only those individuals determined as eligible TAA or
ATAA/RTAA recipients for the first time within a month are included in the daily
transmission to the IRS for that particular month;
Transmit to the IRS only the header data in the approved file format when there are no
individual records for eligible TAA or ATAA/RTAA recipients to transmit; and
Maintain the monthly listing of eligible TAA and ATAA/RTAA recipients within the state’s
document retention policy.
(A diagram is provided on page three of this attachment showing the steps listed above.)
Once an individual is reported eligible for a month, s/he is not reported again for that month
unless action occurs which makes the individual ineligible for such month. If an individual is
determined to be an eligible TAA or ATAA/RTAA recipient for a particular week that is split
between two months, the SWA will submit a record for that individual for both months. To
notify the IRS of the appropriate correction to previously reported eligibility status and months,
the SWA should use adjustment codes contained in Attachment B to amend the individual’s
eligibility status.
Example:
If an individual is determined eligible to receive HCTC retroactively for a period that begins in
March and continues into April, the months reported are March and April provided that
eligibility has not been previously reported for March or April based on a different week in the
month. The individual is reported again for March or April only to report a ‘lost eligibility’
adjustment code, i.e., code 20-24.
2. Issue Resolution: Issues and problems are bound to arise from the information provided by the
SWAs to the IRS. SWAs and the IRS will use the IB-13 application on ICON to resolve any
issues or problems with the TAA or ATAA/RTAA data submitted by the SWAs. The IB-13
application is a batch mail delivery system using freeform text. It is used to exchange
information between parties on ICON. The SWAs and the IRS will follow the procedures listed
below to resolve any issues or problems with the data submitted by the SWAs.
The IRS will notify a SWA through the ICON IB-13 application, of any file(s) that is
missing information, or if the SWA-provided TAA or ATAA/RTAA information appears
to be incorrect based on other information the IRS has obtained.
The SWA will respond to the IRS with additional or corrected information about TAA or
ATAA/RTAA eligibility information based on the review of state TAA or ATAA/RTAA
records.
The IRS will maintain a log of all requests that it makes to the SWAs and all replies
received from the SWAs.
The SWA will maintain a log of all requests made by the IRS and all replies the SWA
provides to the IRS.
The IRS will request information about TAA or ATAA/RTAA eligibility information
from the designated official from the SWA.
A diagram is provided on page four showing the steps listed above to resolve issues / problems
with the TAA or ATAA/RTAA data submitted to the IRS.
SWA TRANSMISSION OF TAA OR ATAA/RTAA ELIGIBLE INDIVIDUALS
Identification of Eligible TAA
or ATAA/RTAA Individuals
Not TAA or ATAA/
RTAA Eligible Recipient
NO Is Individual
Qualified for TAA or
ATAA/RTAA
Yes
Prepare TAA or IF SWAs do not have any daily TAA or
ATAA/RTAA ATAA/RTAA Eligible Record(s) to
Eligibility Record transmit, the SWA will send an HCTC
header record with zeros in the Total
record Count field.
Is This a New
YES
Month
NO
Process New
Monthly Record(s)
Has this TAA or ATAA/RTAA YES File Not Stored
record been processed for this
month
New Monthly Records
Storage NO
Process New
Records
SWA TAA or
ATAA/RTAA
Daily
Record(s)
Current Monthly
Records Storage
Will become prior month file at the
start of a new month
SWA - IRS Issue Resolution
XMIT TAA or ATAA/RTAA
Eligible Individuals Lists
Saved Request and
Decision
YES Process the HCTC
Does the SWAs TAA or ATAA/
1. Create Log Entry RTAA eligible list match the
insurance information data
NO
2.Process the
Request
Saved Request and
Decision
Send a request using the IB13 1. Create Log Entry
to the SWA and request
corrective information or 2.Process the
additional data Request
Send reply stating "not a
person that was submitted
for the HCTC"
NO
Is the request valid, that is, is it a TAA
YES or ATAA/RTAA eligible individual
that was sent to the IRS
Send reply wilth
additional
information /
NO
corrective
information
Does the reply from the
SWA(s) provides the YES Process the HCTC
information that is needed
All shaded areas are the responsibility of the IRS
Non-shaded areas are the responsibility of the SWAs
Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2016/UIPL_01-17-Attachment-B_Acc.pdf)
Attachment B
HCTC TAA, ATAA/RTAA Daily Record File
HCTC Inbound State Header Data Format (Header Data Elements)
HIPAA
Field Name Length Position Data Type Required Notes
Compliant
State 2 1-2 Alpha Y Y Official state abbreviation
Message ID 6 3-8 Numeric Y Unique record Identifier
File Creation Date 8 9-16 Date Y Y Date record was created
File Date 8 17-24 Date Y Y Date the file was created for
Version Control No 4 25-28 Numeric Y File Version
State Contact Name 60 29-88 Alpha Y Y Person who created the file
State Contact Phone No 10 89-98 Numeric Y Contact phone number
01 - TAA; 02 – ATAA/RTAA; 03 -
File Source 2 99-100 Alpha Y
PBGC
Total Record Count 12 101-112 Numeric Y Y Right justified blank filled
HCTC Inbound State Candidate Data Format (HCTC Detail Data Elements)
State 2 1-2 Alpha Y Y Official state abbreviation
Message ID 6 3-8 Numeric Y Unique record identifier
Social Security Number 9 9-17 Numeric Y Y Do not include dashes
First Name 25 18-42 Alpha Y Y
Middle Name 25 43-67 Alpha Y
Last Name 35 68-102 Alpha Y Y
Suffix 10 103-112 Alpha/Numeric Y
Date of Birth 8 113-120 Date Y Data format: MMDDYYYY
Street Address Line 1 55 121-175 Alpha/Numeric Y Y
Street Address Line 2 55 176-230 Alpha/Numeric Y
Street Address Line 3 55 231-285 Alpha/Numeric Y
City 30 286-315 Alpha Y Y
State 2 316-317 Alpha Y Y
Zip Code 15 318-332 Numeric Y Y
Eligibility Month/Year 6 333-338 Date Y Data format: MMYYYY
Values (00, 10, 20, 21, 22, 23, 24 and
Eligibility Adjustment Code 2 339-340 Numeric
99)
Specifics about the file
File frequency Daily
Code Set ASCII
File Format Fixed field length
TAA/ATAA/RTAA/PBGC participants who are either new to the program or people
File make-up
who it has been determined are still eligible for the benefits
Number of files per day per state 1 or more
Maximum number of records per file No known limit
Number of states per file 1
Line Terminators <CR><LF>
End of Body Indicator <ETX>
End of File Indicator <EOT>
ASCII DEC Values Character Dec Hex Oct
CR D(13) D 015
LF D(10) A 012
ETX D(3) 3 003
EOT D(4) 4 004
DEFINITIONS
HCTC Inbound State Header Data Format (HCTC Header Data Elements)
State: State Abbreviation (e.g., Maryland (MD)
Actual date that the file was created on system (System Date). The date that the file was created in
File Creation Date:
MMDDYYYY format.
Actual time that the file was created (System Time). The date that the data within the file reflects in
File Date:
MMDDYYYY format.
Version Control No: Current version is 0001. Used to determined which file format was used to create the file
State Contact Name: Provide the name of the person responsible for sending the files and is able to respond to questions.
State Contact Phone
Provide the phone number of the state contact person
No:
File Source: Enter File Source Code: 01 TAA Eligible Participant
02 ATAA/RTAA Eligible Participant
03 For PBGC Eligible Participant
Total Record Count: Total number of individual records in the body of the file. (If a person is in the file multiple times, each
record would add to the recount count). Right justify, zero fill.
HCTC Inbound State Candidate Data Format (HCTC Detail Data Elements)
State State Postal Code of SWA sending data
Unique record identifier. Sequential counter that begins with a one (1) and continues until its reaches
Message ID
999999.
Social Security
The individual's assigned social security number
Number:
First Name: The individual's first name
Middle Name: The individual's middle name
Last Name: The individual's last name
Suffix: Individual suffix (e.g., Jr. IV, Sr.)
Date of Birth: The individual's date of birth. Format us MMDDYYYY.
Street Address Line 1: First line of the individual's mailing address
Street Address Line 2: Second address of the individual's mailing address (only if needed)
Street Address Line 3: Third line of the individual's mailing address (only if needed)
City: Individual's mailing address city
State: State Abbreviation (e.g., Maryland (MD)
Zip Code: Postal zip code - left justify, space fill. (The 15 characters is a HIPAA standard that is used to handle non
USA based postal code.
Eligibility Month/Year: The current month and year that the individual is qualified as either a TAA or ATAA/RTAA recipient.
Format is MMYYYY.
Eligibility Adjustment
Code: Enter Code:
Default Value: 00 Eligible Individual
Eligibility Adjustment 10 Backdated Determination of Eligibility
20 Lost Eligibility due to an Amended Eligibility Determination
Code:
21 Lost Eligibility due to an Administrative or Employer Error
22 Lost Eligibility due to Claimant Error Without Willful Intent
23 Lost Eligibility due to Claimant Error with Willful Intent
24 Lost Eligibility due to an Appeals Reversal
99 Participant is a Lump-Sum Payment Recipient (PBGC Code Only)
Explanation of Eligibility Adjustment Code
Code 00 will be used to report an individual that is meeting the TAA or ATAA/RTAA recipient
Default Value: Code 00 criteria for the HCTC for the first time within a month. (Note: Multiple transactions for different
periods of eligibility may occur within the same daily transmission.)
Note: If an individual is determined not to be TAA or ATAA/RTAA eligible for a portion of a
month (ex., loses eligibility for one week) but is deemed eligible for one day or more for that month,
Eligibility Adjustment Code: that individual is considered a TAA or ATAA/RTAA eligible recipient for HCTC for the entire
month. Therefore, codes 20-24 should be used only when removing an individual's eligibility status
for an entire month.
10 Backdated Determination of Eligibility
Code 10 will be used to report eligibility periods which precede earlier months than previously reported with a code 00 for TAA or
ATAA/RTAA recipients. These transactions will result from the states’ appeals and/or review procedures, wage reconsideration,
administrative error, or any other procedures that establish eligibility subsequent to an initial eligibility.
20 Lost Eligibility due to an Amended Eligibility Determination
Code 20 will be used to report changes in a TAA or ATAA/RTAA recipient's eligibility when a related TRA/applicable UI entitlement
is amended, making the individual ineligible for HCTC for the previously reported month in its entirety. (Note: Code 20 will only be
used when it is determined that one of the specific codes listed below can not be determined. This code is permitted when a state's
database does not retain sufficient information to permit specific causes to be identified.)
21 Lost Eligibility due to an Administrative or Employer Error
Code 21 will be used to report changes in a TAA or ATAA/RTAA recipient's eligibility when a related TRA/applicable UI entitlement
is amended, making the individual ineligible for HCTC for the previously reported month in its entirety, and the basis for the change
resulted from agency error and/or erroneous information furnished by the employer. Examples of causes for these transactions are
incorrect separation information or incorrect wages furnished by the employer or from data entry errors by the agency.
22 Lost Eligibility due to Claimant Error Without Willful Intent
Code 22 will be used to reverse an individual's entitlement as a TAA or ATAA/RTAA recipient for a month reported earlier when the
amended eligibility is due to an action on the part of the eligible individual, and such action is deemed without willful intent by the
individual to misrepresent facts pertinent to her/his eligibility. Examples of the individual’s actions are not reporting earnings
correctly, failure to meet the state’s able and available laws and/or the work search requirements of the law. 'Without willful intent'
will be determined in accordance with applicable state law.
23 Lost Eligibility due to Claimant Error with Willful Intent
Code 23 will be used to reverse an individual's entitlement as a TAA or ATAA/RTAA recipient for a month reported earlier when the
amended eligibility is due to an action on the part of the eligible individual, and such action is deemed willful intent on the part of the
individual to misrepresent facts pertinent to her/his eligibility. Examples of the individual’s actions are not reporting earnings
correctly, failure to meet the state’s able and available laws and/or the work search requirements of the law. 'Willful intent' will be
determined in accordance with applicable state law.
24 Lost Eligibility due to an Appeals Reversal
Code 24 will be used when an individual is determined not to be an eligible TAA or ATAA/RTAA recipient as a result of an appeals
reversal of the initial determination of TAA or ATAA/RTAA eligibility.
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