DEADLINE FOR 2016-2017 ISIR CORRECTIONS

This year, the federal deadline to make corrections or updates to a 2016-2017 ISIR is on Saturday September 9, 2016.

According to the Federal Register, the deadline date for the receipt of a signature page for the FAFSA (if required), correction, notice of change of address or school, or request for a duplicate SAR is September 9, 2017.

For all Federal student aid programs, an ISIR or SAR for the student must be received by the institution no later than the student’s last date of enrollment for the 2016-2017 award year or September 23, 2017, whichever is earlier.

Verification documents must be received by the institution no later than 120 days after the student’s last date of enrollment for the 2016-2017 award year or September 23, 2017, whichever is earlier.

Verification guidance for 2015 tax filers unable to obtain transcripts

For individuals selected for verification who filed a 2015 tax return with the IRS but who are unable to obtain a transcript from the IRS, ED provides an update to the documents which schools may accept. The tax filer will need to provide to the institution proof that the IRS was unable to provide the tax return transcript. Note that, for a tax filer who recently filed their tax return, adequate time should be allowed, generally four to six weeks, for the IRS to have processed the return before a tax return transcript is requested.

The alternative documentation that must be submitted to the institution by a tax filer who meets the requirements described above is as follows:

  1. A signed copy of the relevant (i.e., applicant, spouse, or parent) 2015 IRS tax return that was filed with the IRS.
  2. A statement from the tax filer, on or attached to the tax return, which certifies that the tax return submitted to the institution, includes the same information that was submitted to the IRS.
  3. Documentation from the IRS that the transcript request was unsuccessful.
    • For tax filers who requested a transcript using the IRS online transcript request process, a signed and dated copy of the screen shot from the official IRS Web page that displays a message indicating that the transcript request was unsuccessful.

For the reasons noted above, a screen shot saying that the “Get Transcript Online” tool is not available is not sufficient documentation that an attempt to obtain a transcript was not successful.

  • For tax filers who requested a transcript using IRS Form 4506T-EZ or Form 4506-T, a copy of the IRS response that was mailed to the tax filer stating that the IRS could not provide the transcript. The copy of the IRS response must be signed and dated by the tax filer.
  • For tax filers who requested a tax transcript using the IRS online transcript request process (Get Transcript Online or by Mail), a signed and dated copy of the screen shot from the official IRS Web page that displays a message indicating that the tax transcript request was unsuccessful.
  • For tax filers who requested a tax transcript using IRS Form 4506T-EZ or Form 4506-T, a copy of the IRS response that was mailed to the tax filer stating that the IRS could not provide the tax transcript. The copy of the IRS response must be signed and dated by the tax filer.

Note: Because the IRS does not provide written confirmation of the failure of a transcript request made by calling 1-800-908-9946, there is no alternative documentation for that process. Impacted tax filers must request a transcript using either the online (Get Transcript by Mail service) or paper process (IRS Form 4506T-EZ or Form 4506-T).

  1. A completed and signed IRS Form 4506T-EZ or Form 4506-T that includes on line 5 the name, address, and telephone number of the institution as the third party to whom the IRS is to mail the 2015 IRS transcript. The institution should proceed with verification and simply retain the IRS Form 4506T-EZ or Form 4506-T and not submit it to the IRS. However, if the institution questions the accuracy of the information on the signed copy of the paper tax return, it must, before verification can be completed, submit the IRS Form 4506T-EZ or Form 4506-T to the IRS and wait for the IRS to return the transcript or confirmation that a transcript is not available for that tax filer.

For more information click here: http://bit.ly/2f5PRh6

PPY FAFSA Verification and Use of Professional Judgment Authority

Early FAFSA Verification and Conflicting Information Resolution
The Early FAFSA is just a few months away and has had many a FA office stressing out a bit as they scramble to get ready for the October 1, 2016 launch.

In case you missed it – Beginning with the 2017-2018 cycle, the FAFSA will not only be available to students and families three months earlier, it will also collect income information from the tax/calendar year one year earlier than has been used in the past. Thus for the 2017-2018 FAFSA, students and families will provide “Prior-Prior-Year” (PPY) income information from calendar year 2015 and not from calendar year 2016. Fortunately, almost all tax return filers will be able to electronically transfer their tax information directly into their FAFSA by using the IRS Data Retrieval Tool (DRT). Continue reading PPY FAFSA Verification and Use of Professional Judgment Authority

Revised 2016-2017 FAFSA Verification-IRS Tax Return Transcript Matrix

Ed has released corrected 2016-2017 IRS Tax Return Transcript Matrixes after several institutions noted that the original IRS Tax Return Transcript Matrix did not accurately describe which lines from an IRS Tax Return Transcript should be used for verification of Income Tax Paid. ED explains that this inaccuracy was the result of different placements on the IRS transcripts of certain taxes and credits that are related to the taxpayer’s enrollment (or lack of enrollment) in an approved health insurance program as provided for in the “Affordable Care Act” (ACA). Only a small number of taxpayers are impacted by these ACA taxes and credits.

Under provisions of the Higher Education Act (HEA), taxes and credits related to the ACA are not to be included in the amount of U.S. Income Tax that is used in the calculation of a student’s expected family contribution (EFC). http://1.usa.gov/1NZiq07