Azure Communication Service - Regulatory Document Approval for SMS

Maz Cruz 20 Reputation points
2026-08-05T14:47:51.35+00:00

Hello,

We've recently purchased a tollfree number for development purposes on Communication Services and submitted the regulatory document for SMS. Just recently, we've received a response:

July 28, 2026 Entity misclassification (legal entity type mismatch)

Our company name, type (S-Corp) and EIN have all been provided.

An email was sent to 'acstns@microsoft.com' requesting clarification. Please let us know if you could assist.

Application ID: cc1129a7-0390-4d3f-88fb-d282651200f0

Thank you,

Maz Cruz

Azure Communication Services
Answer accepted by question author
Praneeth Maddali 12,670 Reputation points Microsoft External Staff Moderator
2026-08-05T18:37:39.7866667+00:00

Hi @Maz Cruz

Thanks for reaching out and sharing the details, including the Application ID cc1129a7-0390-4d3f-88fb-d282651200f0.

The rejection reason “Entity misclassification (legal entity type mismatch)” usually means the business/entity type selected in the toll-free verification form does not match how the company is registered with the IRS. Since you indicated the company is an S-Corp, the underlying legal entity is a corporation (S-Corp is a tax election). Selecting Sole Proprietor or another non-matching type while providing a corporate name and EIN commonly triggers this.

Recommended next steps:

  1. Pull your official IRS documentation (CP-575 EIN Confirmation Letter or Letter 147C). These show the exact legal business name and EIN as registered.
  2. In the Azure portal, go to your Communication Services resource > Regulatory Documents and submit a new toll-free verification application (rather than editing the rejected one if the portal does not allow a clean update).
  3. In the Company Details section, select the entity/business type that correctly corresponds to a corporation, and enter the legal name and EIN exactly as they appear on the IRS letter (including any punctuation or suffixes). Keep the company name, address, website, and contact details consistent.
  4. Complete the remaining sections carefully (program description, opt-in process with clear screenshots/proof, volume, and sample templates) following the guidelines.

Reference :

https://learn.microsoft.com/en-us/azure/communication-services/quickstarts/sms/apply-for-toll-free-verification

https://learn.microsoft.com/en-us/azure/communication-services/concepts/sms/toll-free-verification-guidelines

https://learn.microsoft.com/en-us/azure/communication-services/concepts/sms/sms-faq#toll-free-verification

Once the corrected application is approved by the aggregator (typically several weeks), SMS capability on the toll-free number should be restored. In the meantime, traffic from an unverified or rejected number remains restricted.

Please let us know if you run into any issues while resubmitting or if you have additional details from the original submission . Happy to help further.

 Please click "Accept the answer” and Yes, this can be beneficial to other community members.

If you have any other questions, let me know in the "comments" and I would be happy to help you.

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  1. Maz Cruz 20 Reputation points
    2026-08-18T14:18:39.8933333+00:00

    Hi Praneeth,

    We've ended up purchasing a new toll free number and submitted for verification yesterday with the IRS document validating our company's EIN#. We've also included our full company name without any abbreviations. As of this morning, SMS status is still in 'Verification in Progress'. We will reply back once we receive an update.

    Thank you again,

    Maz

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  2. Maz Cruz 20 Reputation points
    2026-08-18T14:29:26.51+00:00

    One thing that I've left out, we were unable to submit a new toll-free verification application since the form did not allow us to select the tollfree number.

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