Transcript Federal Update

Verification
NMASFAA Conference
March 27, 2014
Kevin Campbell
Training Officer
Region VI
214-661-9488
[email protected]
A copy of this presentation is on www.NMASFAA.org
Please complete ED’s survey regarding this presentation:
https://s.zoomerang.com/s/KevinCampbell-TX
Kevin Campbell
Training Officer
Region VI
214-661-9488
[email protected]
A copy of this presentation is on
www.NMASFAA.org
Please complete ED’s survey regarding this
presentation:
https://s.zoomerang.com/s/KevinCampbell-TX
3
Did You Know?

You need to have a written, public Verification Policy
It should address:






The time period in which students must submit verification
documentation
The consequences for failing to submit those documents in
time
The method you will use to notify students if their EFC and Title
IV aid amounts change
The procedures you or students will follow to correct FAFSA
data
The procedure you will follow to refer a student to the Office of
Inspector General
4
Who is Subject to Verification?
•
Selected by ED (CPS) using risk model
− Targets
error prone data items specific to an applicant
− Non-selected applicants are again subject to risk model
when submitting corrections
− Data elements identified in Federal Register notice
•
Selected by the school
− School
criteria
− Items selected by the school
− Not required to verify federal data elements for groups
5
Verification & Professional Judgment (PJ)
•
Applicants selected for verification by ED or
school
−
−
•
Must report PJ on ISIR
−
6
Verification must be completed before PJ adjustments
made
If not selected, not required to be verified prior to
performing PJ
ISIR with PJ properly reported will not be subject to
ED’s verification selection
Changes To FAFSA Information
•
Submit all verification changes for subsidized
programs to CPS if change is − To
any non-dollar item that affects the EFC or
− A single dollar item of $25 or more
•
7
If required to submit one change, must submit
all changes
Tax Filers - Extensions
• Persons who are required to file and have obtained
filing extensions must submit – IRS form 4868 or IRS approval to extend beyond Oct 15
– W-2 for each source of employment income
– Signed statement by a self-employed individual certifying
amount of AGI & US income tax paid for 2013
– When above documentation reviewed, verification is
considered complete (disbursements are valid)
• School may request transcript/IRS DRT when taxes
are filed
− If received, must re-verify AGI, taxes paid
8
2013-2014 Verification
9
Verification Text
• Starting with 2013-14 award year, no
sample verification worksheets
• For 2013-14, Electronic Announcement
posted on January 18, 2013
10
10
2013-14 Verification
Move Toward Customized Verification

Verification Tracking Groups

Group V1 - Standard Verification Group
 Same

core FAFSA items as in 2012-2013
Group V2 - SNAP Verification Group
 SNAP
Only
 Group V3 - Child Support Paid Verification Group
 Child Support Paid Only
11
2013-14 Verification

Five Verification Tracking Groups
 Group
V4 - Custom Verification Group
 High School Completion
 Identity/Statement of Educational Purpose
 SNAP, if reported on ISIR
 Child
 Group
 All
Support Paid, if reported on ISIR
V5 - Aggregate Verification Group
items from Groups V1 and V4
12
Verification Selection
Of the roughly 6,000,000 applicants selected for
verification from the roughly 20,000,000 total
applicants for 2013-14
• Roughly 1% were placed in the V4--Customized
Verification Group
• Roughly 1.5% were place in the V5--Aggregate
Verification Group
13
2014-2015 Verification
14
2014-2015 Process
•
CPS will continue to set a Verification Flag on ISIR
to indicate FAFSA selected for verification
• CPS will continue to place each selected applicant
into one of five Verification Tracking Groups
• Verification Selection Change Flag will identify a
transaction selected for verification when the
previous transaction was not selected for
verification
15
Verification Items
•
See Federal Register Notice June 13, 2013
• See DCL GEN-13-16 published June 13, 2013
• Group V2 - SNAP Verification Group removed
• New Group V6 – Household Resources
Verification Group added
16
Verification Tracking Groups
•
•
•
•
•
•
V1
V2
V3
V4
V5
V6
Standard Verification Group
* Reserved for FSA Use *
Child Support Paid Verification Group
Custom Verification Group
Aggregate Verification Group
Household Resources Verification Group
For 2014-2015, once placed in a verification tracking
group, student will always remain in that group
17
Group V1 - Standard
•
All applicants selected in this group will verify
− Number

Limited exceptions
− Number

in household
in college
Limited exceptions
− SNAP,
if included on FAFSA
− Child support paid, if included on FAFSA
18
Group 1 – Standard – Income Information
•
Tax filers will verify:
− Adjusted
gross income (AGI)
− U.S. income tax paid
− Untaxed portions of IRA distributions
− Untaxed portions of pensions
− IRA deductions and payments
− Tax exempt interest income
− Education credits
•
Non-tax filers will verify
− Income
19
earned from work
Group 3 – Child Support Paid
•
Child support paid verified by − Statement
signed by applicant or parent, as appropriate,
certifying

Amount of child support paid
 Name of person who paid child support
 Name of person to whom child support was paid
 Names of the children for whom child support was paid
− If
school has reason to believe signed statement is
inaccurate, applicant must provide supporting
documentation
20
Group 4 – Custom
•
High School Completion Status
• Identity/Statement of Educational Purpose
• SNAP, if included on FAFSA
• Child support, if included on FAFSA
21
Group 5 - Aggregate
•
High School Completion Status
• Identity/Statement of Educational Purpose
AND
•
22
All items from Group 1 based on tax filing
status
Group 6 – Illustration
V6
23
Group 6 – Household Resources
•
New Verification group
• Verify untaxed income information reported in
Question 45 for the student
(and spouse, if applicable) and Question 94 for
the dependent student’s parent(s)
• Verify income data based on tax filing status
• If verified income does not appear to provide
sufficient financial support, student/parent must
explain how the family was supported during the
2013 calendar year
24
Verification Suggested Text
See November 8, 2013 EA for suggested text
25
Certification and Signatures
•
If schools combine two or more sets of text into a
single document, only one set of certification and
signatures is required
− Except
a separate signature is required by the student
for the Statement of Educational Purpose
•
26
Certification and signature not required for
submission of IRS tax return transcripts
Household Size Documentation
•
Statement signed by applicant (and parent if
dependent) listing name, age and relationship to
applicant of each household member
• For dependent students, must include both legal
parents if they live together, regardless of marital
status or gender
• Household size verification not required if –
− Dependent
student: If parent is single, divorced or
widowed, and family size is 2, or if married, family size is 3
− Independent student: If applicant is single, divorced or
widowed, and family size is 1, or if married, family size is 2
27
Number in College Documentation
•
Signed statement by applicant
(and parent if dependent) listing name and
age of each eligible household member
who is, or will be, attending an eligible
postsecondary institution at least half-time
in the 2014-2015 award year,
and the name of the school
• Not required to be verified if number in
college number is one
28
Acceptable Documentation for Tax Filers
•
For items on the 2013 tax return
− Amounts
retrieved and unchanged from IRS via
FOTW (either on initial or correction application)
with IRS Request Flag value of ‘02’
OR
− A tax transcript obtained from the IRS
29
Coming Soon
Electronic Announcement detailing
enhancements to the FAFSA IRS Data
Retrieval Tool for the 2014-15 FAFSA
processing year
30
GEN 14-05
Enhancements to IRS processes used
by FAFSA applicants to request, obtain,
and submit to their schools IRS Tax
Return Transcripts
31
Tax Transcript Required
•
Applicant (or parent) did not use IRS data
retrieval at initial filing or through FOTW
correction process
• Information retrieved from IRS is
subsequently changed before or after
submission
• Married independent applicant and spouse
file separate tax returns
32
Tax Transcript Required
•
In all instances when the dependent
student’s legal parents are unmarried and
living together
• Parents of dependent student file separate
tax returns
• Applicant or parent change in marital status
after 12/31/13
33
Paper Tax Returns
•
Limited circumstances when a signed copy of
relevant tax return is acceptable
− Identity
Theft for 13-14
− Amended returns
− Puerto Rico, Virgin Islands, American Samoa,
Commonwealth of Northern Mariana Islands and foreign
tax returns
− Freely Associated States residents
•
Electronic Announcement October 23, 2013
− Unable
34
to use IRS DRT or obtain transcript for 13-14
Identity Theft for 2014-15
•
A victim of IRS identity theft who is not able to obtain
a 2013 IRS Tax Return Transcript or use the IRS
Data Retrieval Tool (DRT) must contact the IRS at
800-908-4490
• Upon authentication of the tax filer’s identity, the IRS
will provide, by U.S. Postal Service, a printout of the
tax filer’s 2013 IRS income tax return information
which can be used to complete verification
• See GEN 14-05
35
Acceptable Documentation for Non-Tax
Filers
•
Non-tax filers must verify income from work
• Copies of all W-2 forms received for each source
of employment income received for tax year 2013
• Signed statement certifying the individual:
− Has
not filed and is not required to file a tax return
− The sources of income earned from work as reported on
the FAFSA and amounts of income from each source
not reported on the W-2 forms
36
Non-Tax Filers
•
If a school questions a claim that a person
has not and is not required to file a tax
return, the school must require the
applicant to submit a “Verification of
Nonfiling” from the IRS
− Use
IRS Form 4506-T and check box 7
− Per IRS guidance, a response to this request
will not be issued until after June 15, 2014
37
High School Completion Status
•
High school diploma
• Recognized equivalent of a high school
diploma
• Homeschool
38
High School Diploma Documentation
Copy of the applicant’s high school diploma
• Copy of the applicant’s final high school transcript
that shows the date the student completed
secondary school
• Copy of “secondary school leaving certificate” or
similar document from appropriate central
government agency for students who completed
secondary education in a foreign country and are
unable to obtain a copy of their high school diploma
or transcript
•
39
Recognized Equivalent to HS Diploma
•
General Educational Development (GED)
Certificate
• State certificate received by the student after
passing a state-authorized examination that the
state recognizes as the equivalent of a high
school diploma
• Academic transcript of a student who has
completed at least a two-year program that is
acceptable for full credit toward a bachelor’s
degree
40
Recognized Equivalent to HS Diploma
For a person who is seeking enrollment in an
educational program that leads to at least an
associate degree or its equivalent and has not
completed high school but has excelled academically
in high school, documentation from the high school
that the student excelled academically in high school
and documentation from the postsecondary
institution that the student has met the formalized,
written policies of the postsecondary institution for
admitting such students
41
Homeschool Documentation
•
Transcript or the equivalent, signed by the
parent or guardian, that lists the secondary
school courses completed by the applicant
and documents the successful completion
of a secondary school education; or
• A secondary school completion credential
for home school (other than a high school
diploma or its recognized equivalent)
provided for under state law
42
Identity/Statement of Educational Purpose
•
Appear in person and present to an institutionally
authorized individual and present
government-issued photo identification (driver’s
license, non-driver’s license or passport)
− A signed statement of educational purpose certifying
that the federal student financial assistance received will
only be used to pay the cost of attending that institution
during the 2013-2014 award year
− A valid
Text provided by the Department and cannot be modified
43
Identity/Statement of Educational Purpose
•
For documentation provided in person, the
school must maintain an annotated copy of
the documentation provided including
− The
date the documentation verifying identity
was provided
− The name of the institutionally-authorized
person that obtained the documentation from
the applicant
44
Statement of Educational Purpose
Statement of Educational Purpose
I certify that I _____________________________ am the individual signing this
(Print Student’s Name)
Statement of Educational Purpose and that the federal student financial assistance
I may receive will only be used for educational purposes and to pay the cost of
attending _________________________________________ for 2014-2015.
(Name of Postsecondary Educational Institution)
_________________________________________
(Student’s Signature)
45
_______________
(Date)
Identity/Statement of Educational Purpose
•
If a school determines that an applicant is unable to
appear in person, the applicants provide
− A copy
of a valid government-issued photo identification
(driver’s license, non-driver’s license, or passport)
− An original notarized statement signed by the applicant
certifying that the federal student financial assistance
received will only be used to pay the cost of attending that
institution during the 2014-15 award year
 E-notary
 Text
46
is not acceptable for Title IV purposes
provided by the Department and cannot be modified
Verification Text
•
For 2014-15, Electronic Announcement
posted on November 8, 2013
• Institutions are able to develop a
customized worksheet for individual
students or groups of students
47
V4 and V5 Results Reporting
•
FAA Access will be updated to add identity
verification results functionality
− Individually
− Batch
48
upload
V4 and V5 Results Reporting
FAA Access
will be
updated to
add Identity
Verification
Results to
the home
page
V4 and V5 Results Reporting
50
V4 and V5 Results Reporting
•
V4 and V5 Results Reporting
• The FAA will enter
SSN, Name ID,
and Verification
Results from a
dropdown menu
on this page
• Click “Add SSNs”
and enter
additional ones
V4 and V5 Results Reporting Options
•
Verification completed in person, no issues found
• Verification completed remotely, no issues found
• Verification attempted, issues found with identity
• Verification attempted, issues found with high
school completion
• No response from applicant or unable to locate
53
V4 and V5 Results Reporting File Upload
Available after
April, 2014
FAAs will be able to create and upload a flat file
V4 and V5 Results Reporting File Upload
xxx-xx-xxx
xxx-xx-xxx
xxx-xx-xxx
aa
aa
aa
FAAs will get a confirmation page with the results
submitted and can print the page for their records
56
•
Verification???
•
What? Don’t you trust me?
57
“Trust, but verify”
58
Of course we trust you Mikhail, TRUST, But VERIFY!
59
Thank you!
60
Resources
and
Contact
Information
61
Ordering IRS Tax Transcripts
ONLINE
IRS website
www.irs.gov
PHONE
Toll free IRS number
1-800-908-9946
62
SMART PHONE
Download IRS2Go app free for
iPhone/iPod Touch from
iTunes or Google Play Store
for Android phone
MAIL
Obtain form online & mail to
the IRS
http://www.irs.gov/pub/irspdf/f4506tez.pdf
Tax Transcript Timeframes
•
IRS Tax Return Transcript
•
Can request about 3 weeks after an electronic return
was filed and 6-8 weeks after a paper return was filed
 Paper (IRS Form 4506T-EZ or 4506-T):
– 10 business days for processing once form received and accepted
 Online, Smart phone app, or phone:
– 5-10 business days for processing once request received and accepted
•
Transcripts are sent to taxpayer’s address
 Paper
•
request: can be sent to a third party.
Signature not required on form (encouraged)
63
Tax Return Transcript Matrix
Where are
the line item
numbers?
• ED guidance to schools
on how to read the IRS
Tax Return Transcript
– FAFSA Information,
FAFSA Q#, ISIR Field #s,
Transcript line item, paper
tax return line numbers
• Use “per computer”
*Electronic Announcement - March 16, 2012 - 2012/2013
*Electronic Announcement - March 15, 2013 - 2013/2014
64
Help with Title IV Questions
•
For Schools & Other Professionals
•
•
•
•
Research and Customer Care Center (RCCC)
1-800-433-7327
[email protected]
For Students
•
•
Federal Student Aid Information Center (FSAIC)
1-800-4FED-AID
65
66
Verification Resources
•
6/18/10 NPRM (Pages 34825 – 34834)
•
•
10/29/10 Final Rule (Pages 66902 – 66913
and 66954 – 66958)
•
•
http://ifap.ed.gov/fregisters/FR061810ProgramInterityI
ssuesNPRM.html
http://www.ifap.ed.gov/fregisters/FR102910Final.html
Q&A on Program Integrity website:
•
http://www2.ed.gov/policy/highered/reg/hearulemakin
g/2009/verification.html
67
2013-14 Verification Resources
•
Federal Register Notice of Information To Be
Verified for the 2013–14 Award Year
•
•
Dear Colleague Letter GEN-12-11
•
•
http://www.ifap.ed.gov/fregisters/FR071212FASFA.html
http://www.ifap.ed.gov/dpcletters/GEN1211.html
Plans for 2013-14 Verification Worksheets
•
http://ifap.ed.gov/eannouncements/110112Plansfor1314Ver
ificationWorksheets.html
68
2013-14 Verification Resources
•
2013-14 Verification Suggested Text
•
•
http://ifap.ed.gov/eannouncements/011813VerificationSugg
estedText1314.html
2013-14 Electronic Data Exchange (EDE)
Technical Reference
•
•
http://www.ifap.ed.gov/ifap/byAwardYear.jsp?type=edetech
ref
http://ifap.ed.gov/eannouncements/010913IssueAlertIncorr
ectFieldJustififorVerifiTrackFlag20132014EDETechRef.html
69
2013-14 Verification Resources
•
2013-14 ISIR Guide
•
•
2013-14 Application and Verification Guide
•
•
•
http://www.ifap.ed.gov/ifap/byAwardYear.jsp?type=isirguide
http://ifap.ed.gov/fsahandbook/1314FSAHandbookAVG.html
http://ifap.ed.gov/eannouncements/022813ErrataandUpdatesfor201
32014FSAHandbook.html
2013-14 FAFSA Verification-IRS Tax Return Transcript
Matrix
•
http://ifap.ed.gov/eannouncements/031513FAFSAVerification1314I
RSTaxReturnTranscriptMatrix.html
70
2013-14 Verification Resources
•
FAFSA Applicants Impacted by a Tax Filing
Software Issue Related to IRS Form 8863
•
•
http://ifap.ed.gov/eannouncements/031813FAFSAAppWho
MayHaveBeenImpactedbyaTaxFilingSoftwareIssueRelated
toIRSForm88.html
Availability of 2012 IRS Information for IRS DRT
and for Requesting IRS Tax Return Transcripts
•
http://ifap.ed.gov/eannouncements/030113AcceptableIRS
Documentation20132014AYVerification.html
71
2013-14 Verification Resources
•
Limited Circumstances When a Signed Copy of a
Tax Return or Other Documentation is Acceptable
for Completing Verification
•
•
http://www.ifap.ed.gov/eannouncements/082112LimitedCir
cumstancesWhenSignedCopyofTaxReturnisAcceptable.ht
ml
Acceptable Documentation Update for 2013-14
Award Year Verification
− http://ifap.ed.gov/eannouncements/102313AcceptableDoc
umentationUpdatefor20132014AwardYearVerification.html
72
2013-14 Verification Resources
•
Spanish Statement of Educational Purpose for
2013-14
− http://ifap.ed.gov/eannouncements/071613SpanishStatem
entEducationalPurpose1314.html
73
2014-15 Verification Resources
•
Federal Register Notice, published June 13, 2013
•
•
Dear Colleague Letter GEN-13-16
•
•
http://ifap.ed.gov/fregisters/attachments/FR061313FAFSAI
nformationToBeVerifiedforthe20142015AwardYear.pdf
http://ifap.ed.gov/dpcletters/GEN1316.html
2014-15 Verification Suggested Text
− http://ifap.ed.gov/eannouncements/110813VerificationSugg
estedText1415EA.html
74
2014-15 Verification Resources
•
Reporting Verification Results Using FAA Access to
CPS Online
− http://ifap.ed.gov/eannouncements/111313FSAOIGEAIdent
ityVerificationResults.html
•
DCL GEN 14-05
− http://ifap.ed.gov/dpcletters/GEN1405.html
75