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X12 transaction guide · Government and regulatory

EDI 149 Notice of Tax Adjustment or Assessment

The X12 document a taxing authority uses to notify a taxpayer of an adjustment to a prior filing, or of an assessment of taxes due.

Sent by
Taxing authority
Received by
Taxpayer or its representative
Standard
ANSI ASC X12

What is an EDI 149?

The EDI 149 Notice of Tax Adjustment or Assessment is the ANSI X12 transaction set a taxing authority can use to send a taxpayer either a notice of adjustment to a prior tax filing, or a notice of assessment of taxes due to the authority.

After processing a return, an authority may correct figures, disallow items or assess additional tax, penalties and interest. Electronic notices reach large taxpayers and their tax departments quickly, giving them time to review, pay or dispute within the deadlines stated.

How the EDI 149 worksDiagram of the EDI 149 Notice of Tax Adjustment or Assessment. Taxing authority sends it to taxpayer or its representative. It usually follows 813. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment), DTM (Date/Time Reference) and the required N1 loop with N1 (Party Identification). 1 optional loops are listed by their first segment.How the EDI 149 worksNotice of Tax Adjustment or Assessment: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWS813Electronic Filing of TaxReturn DataEDI 149SENDERTaxing authorityRECEIVERTaxpayer or itsrepresentative997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code NTGS … GETransaction set 149ST … SEHEADINGBGNBeginning SegmentDTMDate/Time ReferenceRequired loop N1 · repeats many timesN1Party IdentificationDETAIL+ 1 optional loop, starting with:TFSBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 149. Your trading partner's implementation guide adds its own requirements.
How the EDI 149 worksDiagram of the EDI 149 Notice of Tax Adjustment or Assessment. Taxing authority sends it to taxpayer or its representative. It usually follows 813. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment), DTM (Date/Time Reference) and the required N1 loop with N1 (Party Identification). 1 optional loops are listed by their first segment.How the EDI 149 worksNotice of Tax Adjustment or Assessment: whosends it, where it fits and what the standardmarks required1 WHERE IT FITSUSUALLY FOLLOWS813Electronic Filing of Tax Return DataEDI 149SENDERTaxing authorityRECEIVERTaxpayer or itsrepresentative997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code NT (GS … GE)Transaction set 149 (ST … SE)HEADINGBGNBeginning SegmentDTMDate/Time ReferenceRequired loop N1 · repeats manytimesN1Party IdentificationDETAIL+ 1 optional loop, starting with:TFSBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 149. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 149, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 149 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Notifying adjustments to filed returns
  • Assessing additional tax, penalties or interest
  • Informing taxpayers of amounts due

Where it fits in the document flow

Usually follows 813 Electronic Filing of Tax Return Data
This document 149 Notice of Tax Adjustment or Assessment
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 149 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • DTM
  • N1
  • TFS
  • FGS
  • AMT
  • SE

Practical example

The 149 in practice

A state revenue department reviews a company's sales tax return and finds a calculation error. It sends the company a 149 explaining the adjustment, the additional tax and interest due and the payment deadline. The company's tax team checks the calculation and pays.

Implementation

Implementation considerations for the 149

  • Route notices to the tax team as soon as they arrive.
  • Note the deadlines for payment or appeal.
  • Reconcile adjustments with the original return.
  • Keep notices with the tax filing records.

How ECOM helps

Automate the 149 with ECOM

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Industry

Financial Services

Secure file transfer and B2B integration for banks and financial institutions.

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

More general questions about EDI are answered in the EDI FAQ.

Related transactions

Related government and regulatory documents

All 29 government and regulatory documents

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