Transcript Document

Verification
Sharing Ideas & Panel Discussion
Panel Members
Janie Burns Bethel University
Celia Bradley Middle Tennessee State University
Amanda Heath TTC Covington
Willie Thomas Chattanooga State CC
Jeanne Hinchee Chattanooga State CC
Agenda
Share verification processes
Panel Discussion
Policy Questions for the Fed?
Janie Burns
University Financial Aid Director
Outsourcing Verification
• We contract with EdFinancial to process verification
• We collect IRS Tax Transcripts & verification
worksheets
• They request any conflicting information documents
• We determine our policy and procedures, and
what documents we accept
Outsourcing Procedures
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Develop policy and procedures
Scan documents when received from students
Add EdFinancial document
EdFinancial accesses our system
When done – documents are marked complete
Reports pulled by each of us
Outsourcing Pros & Cons
Pros
• Number verified per day is not limited to one or two staff
members
• Highly trained personnel that specialize in verification
• Cost compatible to hiring own staff members
o Without staff turnover – training –seasonal hire – cost per file
Cons
• NONE
2012–2013 FAFSA Verification-IRS Tax Return Transcript Matrix
2012–2013 FAFSA Information Requiring Verification
Adjusted Gross Income
2012–2013 FAFSA Q# 2012–2013 ISIR Field#
(Student and Parent) (Student and Parent)
35 and 83
42 and 106
2011 IRS Tax Return Transcript Item
Adjusted Gross Income Per Computer
For IRS Form 1040 Transcripts:
—Income Tax After Credits Per Computer
For IRS Form 1040A Transcripts:
—Tentative Tax Per Computer
For IRS Form 1040EZ Transcripts:
—Total Tax Liability TP Figures Per Computer
2011 IRS 1040 Line 2011 IRS 1040A Line
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#
2011 IRS 1040EZ
Line #
37
21
4
55
35
49
31
N/A
28 + 32
17
N/A
8b
8b
N/A
Income Tax Paid
36 and 84
43 and 107
Education Credits
43a and 91a
50 and 114
Education Credit Per Computer
IRA Deductions and Payments
44b and 92b
57 and 121
KEOGH/SEP Contribution Deduction + IRA Deduction
Per Computer
Tax Exempt Interest Income
44d and 92d
59 and 123
Tax-Exempt Interest
Untaxed Portions of IRA Distributions
44e and 92e
60 and 124
Total IRA Distributions – Taxable IRA Distributions
15a – 15b
11a – 11b
N/A
Untaxed Portions of Pensions
44f and 92f
61 and 125
Total Pensions and Annuities – Taxable
Pension/Annuity Amount
16a – 16b
12a – 12b
N/A
10
Notes
The 2012–2013 FAFSA Verification-IRS Tax Return Transcript Matrix is applicable only to IRS tax filers (IRS Form 1040, 1040A, and 1040EZ) and includes only the income information for tax filers required by the
Department to be verified for 2012–2013.
IRS Tax Return Transcript—Shows most line items from a tax filer's original tax return (Form 1040, 1040A or 1040EZ). An IRS Tax Return Transcript does not include any information from an amended tax return.
Per Computer—A value calculated by the IRS that is present on certain items of an IRS Tax Return Transcript. The Per Computer amount must be used for verification even if it is different than what was reported by the
tax filer to the IRS.
Married Filing Separately—An applicant or an applicant's parent(s) who filed or will file his or her income tax return as "Married Filing Separately" or who is married to someone other than the individual included on a
joint income tax return must provide separate IRS Tax Return Transcripts for each person whose information is included on the FAFSA.
IRS Tax Return Matrix
http://ifap.ed.gov/eannouncements/attachments/022412Verification1213IRSTaxReturnMatrix.xls
Celia Bradley
MTSU Verification Process
• Students notified via e-mail to log into self-service to
review unsatisfied requirements
• Verify emancipated minor and legal guardianship
• Verification tab created for the Financial Aid Office
website
• Student worker updates self-service with documents
submitted
• All documents submitted: File reviewed by full-time
verification clerk
• Missing documents: Filed in missing documents cabinet
• Corrections made through our Banner system and
double checked after correction(s) processed
• Completed files scanned, checked and shredded
MTSU - IRS Data Retrieval Process
• FAFSA received with successful IRS Data Retrieval
Tax return requirement is automatically updated with a
“W” (waived)
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FAFSA changed after IRS Data Retrieval match
Tax return requirement changed to “N” (needed) and
tax return transcript is required
• IRS Data Retrieval Tool used successfully through the
FAFSA correction process
Tax return requirement automatically updated with a
“W”. If this completes all missing requirements, the
student will appear on a list of files ready to verify.
MTSU Process - Filed IRS Extension
Created a form to collect the following information/certification:
Must submit the following:
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Signed copy of 2010 tax return, schedules and W-2s
IRS Form 4868 – Application for Automatic Extension of Time to File US
Individual Tax Return
IRS approval of extension beyond automatic six-month extension
All 2011 W-2s for student/parent filing extension
Self employed: Certify estimated 2011 AGI and tax paid figures
Must agree to the following:
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To utilize IRS Data Retrieval Tool or submit tax return transcript after
2011 tax return has been filed
Agree to repay any funds the student is no longer eligible to receive
after FAFSA is corrected
Understand a hold is placed on the Spring aid until verification is
completed.
Tennessee Technology Center @ Covington
Amanda Heath
Verification
Documentation
• If a student/parent uses the IRS Data Retrieval Tool
successfully and the ISIR has a 02 code, the
student/parent will only be required to complete the
Verification Worksheet.
• If a student/parent does not use the IRS Data Retrieval
Tool and the ISIR has anything but a 02 code, the
student/parent will be required to complete the
Verification Worksheet and provide an IRS Tax Transcript.
• If a student/parent did not file a tax return, the
student/parent will complete the Verification Worksheet,
& provide W2s. If the student/parent states they did not
work, the school may require the student/parent to get
a letter from the IRS confirming there are no W-2s on file.
Verification Questions
• Are there any instances when we can accept a
copy of the tax return?
• If the student/parent did not indicate receiving
SNAP (food stamps), but they mark yes on the
verification worksheet – is that conflicting
information?
• Please explain the Asset Threshold Exceeded field
on the ISIR.
Willie Thomas
Verification Process
Student submits
FAFSA
CPS selects students
for verification
Students who answered
yes to emancipated
minor, legal
guardianship, or
homeless youth are
selected
Requirements are
posted on Student’s
record
Student notified
via email
If IRS Data Retrieval
no transcript required
Student completes
on-line
Verification
Worksheet
No IRS Data Retrieval
Transcript Required
Students who did not
use the IRS retrieval
submits IRS tax
transcripts
Verification Process
IRS tax transcripts
scanned into BDMS
Verification
Worksheets
uploaded into
BDMS overnight
Verification
documents
indexed
Post
information in
system (Banner)
Verification
Complete
Discrepancies:
students are
notified via email
Corrections are sent to
CPS via Banner
Student’s file is
packaged and
awarded
overnight
Panel Discussion and
Questions