…2013 – 14 and beyond…

MASFAA Conference

Samoset Resort, Rockport, Maine

Verification

Annmarie Weisman | 10.22.2012

Verification - Agenda

• Verification in 2013 - 14•What to verify•Required Documentation

• Verification & IRS data•IRS Data Retrieval process•Tax return transcripts and exceptions

• Questions and Answers

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2013 – 2014

Verification

2013-14 Verification

• Award Year begins July 1…verifying ISIRs begins in January 2013

• Continuing small steps toward customized verification

• Items to be verified will be grouped

• Individual student’s ISIR will indicate which group of items to verify

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2013-14 Verification Items

• Retained items from 2012-13

• Added two new items• High school (HS) completion status• Identity/Statement of Educational Purpose

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Information to be Verified

• Effective in 2012-13, ED publishes a Federal Register Notice prior to beginning of each award year’s FAFSA processing listing possible verifiable items and acceptable documentation• 12-13: published July 13, 2011• 13-14: published July 12, 2012

• SAR/ISIR will specify required verification items for individual applicant

Verification Tracking Groups

• 5 Verification Tracking Groups• V1 – V5• Items to verify based on group

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V1– Standard

‒AGI‒U.S. Income Tax Paid‒Untaxed Portions of IRA Distributions

‒Untaxed Portions of Pensions

‒IRA Deductions and Payments

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‒Tax Exempt Interest Income

‒Education Credits‒# of Household

Members‒# in College‒SNAP (Food Stamps)‒Child Support Paid

Tax Filers

V1—Standard (cont.)

• Income Earned from Work• # of Household Members• # in College• SNAP-Food Stamps• Child Support Paid

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Non-Tax Filers

V2—SNAP

• Supplemental Nutrition Assistance Program (SNAP-Food Stamps)

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V3—Child Support Paid

• Child Support Paid by:• the student and/or• the student’s parent (dependent student) • the student’s spouse (independent student)

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V4—Custom

• HS Completion Status• Identity/Statement of Educational Purpose• SNAP• Child Support Paid

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V5—Aggregate

• HS Completion Status• Identity/Statement of Educational Purpose

AND• All items indicated->Tax Filer (V1)• All items indicated->Non-Tax Filer (V1)

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2013-14 VerificationDocumentation of HS completion status:

• HS diploma earned• Copy of HS diploma; or• Final HS transcript that shows the date of graduation 

Note:  If a copy of an applicant’s HS diploma or final transcript is unavailable, the institution may accept alternative documentation

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2013-14 Verification Documentation of HS completion status:

• Recognized equivalent of a HS diploma• GED Certificate;• State certificate received by a student after the student has passed a State-authorized exam that the State recognizes as the equivalent of a HS diploma;

• Academic transcript of a student who has successfully completed at least a 2-year program acceptable for full credit toward a bachelor's degree; --or--

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2013-14 Verification Documentation of HS completion status: recognized equivalent of a HS diploma

• For a person seeking enrollment in an educational program that leads to at least an associate degree or its equivalent and has not completed HS but has excelled academically in HS, documentation from the HS that the student excelled academically in HS and documentation from the post-secondary institution that the student has met the formalized, written policies of the post-secondary institution for admitting such students

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2013-14 Verification Documentation of HS completion status: Homeschooled

• Transcript, or equivalent, signed by the parent or guardian, that lists the secondary school courses completed by the applicant and documents successful completion of a secondary school education; OR

• A secondary school completion credential for home school (other than a HS diploma or its recognized equivalent) provided for under State law

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2013-14 VerificationDocumentation of identity/statement of educational purpose

• Appear in person and present to an institutionally authorized individual*• A valid govt.-issued photo ID, which must be copied

AND • A signed statement of educational purpose

*option for notarized documents if unable to appear in person

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2013-14 Verification Documentation of identity/statement of educational purpose (cont.)—

• Must maintain, an annotated copy of the identification submitted by the applicant that includes:• The date the documentation was received;

AND • The name of the institutionally-authorized person who obtained the documentation

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Verification

Documentation

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What Documents Do I Need?• For taxable income, base year tax information

• For untaxed income and benefits, examples include:– Verification worksheet– Official agency documentation– Signed statement

• Other acceptable documents are listed in the FSA Handbook - Application and Verification Guide

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IRS Data Retrieval and Verification

• An institution may consider information retrieved through the IRS data retrieval process as acceptable verification documentation if: • The Secretary has identified those items as having come from the IRS and

• The items have not been changed• IRS Request Flag = 02

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IRS Data Retrieval Tool

• Filtering questions include logic to determine for the applicant if he is able to use the DRT and transfer data from IRS onto the FAFSA

• Message to recommend use of IRS Data Retrieval include link to IRS site

OR • Message explaining that the IRS Data Retrieval

Tool will not work for applicant

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12-13 DRT Screening Questions

My tax filing status is Married Filing Separately*My tax filing status is Head of Household*I filed an amended tax returnI filed a Puerto Rican or foreign tax returnI filed my taxes within the last 8 weeksNone of the above

*Only presented to married applicants/parents

IRS Data Retrieval Tool

• If link is presented, notified that transferring from FAFSA to IRS website

• Enter identifiers• Information on tax return and corresponding

FAFSA number display• Choose to transfer tax data to FAFSA –or--• Choose NOT to transfer tax data to FAFSA

Updated IRS Request Flags00 Student/ Parent was ineligible to use the IRS Data Retrieval Tool and was therefore not

presented with the option to use it in FAFSA on the Web

01 Student/ Parent was presented with the option to use the IRS Data Retrieval Tool in FAFSA on the Web and elected to use it, but did not transfer IRS data into the FAFSA

02 IRS data for the student/ parent was transferred from the IRS and was not changed by the user prior to submission of an application or correction

03 IRS data for the student/ parent was transferred from the IRS and changed by the user prior to submission of an application or correction

04 IRS data for the student/ parent was transferred from the IRS and then changed by the user on a subsequent transaction

05 Student/ parent was presented with the option to use the IRS Data Retrieval Tool in FAFSA on the Web, but did not elect to use it

06 IRS data for the student/ parent was transferred from the IRS, but a subsequent change made the student/ parent ineligible to use the IRS Data Retrieval Tool

blank IRS Data Retrieval Tool not available in the application method utilized by the student/ parent(i.e., paper FAFSA, EDE, or FAA Access)

IRS Tax Return Transcript

• A tax transcript is required when:• the IRS Data Retrieval Process was not used• the IRS Data Retrieval Process was used, but data was subsequently changed

• the institution has reason to believe that the data transferred is inaccurate (no routine requests)

• a married independent applicant and spouse –or- the parents of a dependent student filed separate tax returns

…but, wait, there’s more…

IRS Tax Return Transcript

• A tax transcript is also required when:• an applicant or applicant’s parent had a change in marital status after the end of the tax year (December 31)

• the applicant, or parent, or spouse (as applicable) filed an amended tax return (along with a copy of the amended return)

IRS Tax Return Transcript Exceptions

• In limited circumstances, if an institution determines that obtaining an IRS Tax Transcript is not possible, the institution may accept a signed copy of the tax return• Must document the reason for allowing this• Examples include:

• Foreign or Puerto Rican tax return• Identity theft (more guidance forthcoming)

Extension Filers

• Verification is complete if you have: • Documentation of IRS extension and• Appropriate W-2(s) or statement if self-employed

• MAY require an individual granted a tax filing extension to provide a copy of their completed and signed tax return when filed

• MUST verify AGI and taxes paid, if you receive a copy of the return

• MAY return all funds disbursed, if you do not receive copy

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Changes to FAFSA Information

• Effective in 12-13, for subsidized programs, all changes resulting from verification must be submitted to CPS if change is - To any non-dollar item or- A single dollar item of $25 or more

• If required to submit one change, must submit all changes

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Verification

Resources

2013-14 Verification Resources

• Federal Register notice published 7/12/12• Dear Colleague Letter GEN 12-11• Electronic Announcements

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Verification Resources

• 6/18/10 NPRM (Pages 34825 – 34834)• http://www.ifap.ed.gov/fregisters/FR061810ProgramInterityIs

suesNPRM.html

• 10/29/10 Final Rule (Pages 66902 – 66913 and 66954 – 66958)• http://www.ifap.ed.gov/fregisters/FR102910Final.html

• Federal Register Notice of Information To Be Verified for the 2012–13 Award Year• http://www.ifap.ed.gov/fregisters/

FR071311FAFSAInformation.html

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Verification Resources

• GEN-11-13 and GEN-11-03• http://www.ifap.ed.gov/dpcletters/GEN1113.html

http://www.ifap.ed.gov/dpcletters/GEN1103.html

• Q&A on Program Integrity website - link from IFAP:• http://www2.ed.gov/policy/highered/reg/hearulemaking/

2009/verification.html

• Sample 2012-13 Verification Worksheets• http://www.ifap.ed.gov/eannouncements/

020312SampleVerificationWorksheets1213.html

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Verification Q & A

Verification Resources

• FAFSA-IRS Tax Return Transcript Matrix• http://www.ifap.ed.gov/eannouncements/

031612FAFSA1213VerificationIRSTaxReturnMatrix.html

• 2012-13 Application and Verification Guide• http://www.ifap.ed.gov/fsahandbook/attachments/1213AVG.pdf

• GEN-12-07—Acceptable Documentation for Income and Taxes• http://www.ifap.ed.gov/dpcletters/attachments/GEN1207.pdf

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IRA/Pension Distributions (Rollovers)

• The solution• Applicant/parent or FAA may modify transferred to FAFSAA by DRT

• If DRT amount is modified to account for a rollover, institution must maintain documentation• Written and signed statement from tax filer indicating amount of distribution excluded

• Signed and Dated Notation by tax filer on IRS Tax Return Transcript that includes the word “Rollover” beside the applicable item

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Ordering IRS Tax Transcripts

Other Resources

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Contact Information

Help with Title IV QuestionsHelp with Title IV Questions

• For Schools & Other Professionals• Research and Customer Care Center (RCCC)• 1-800-433-7327• fsa.customer.support@ed.gov

• For Students• Federal Student Aid Information Center (FSAIC)• 1-800-4FED-AID

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Contact InformationContact Information

• For follow-up questions on this session, contact me at:

Annmarie Weisman, Training Officerannmarie.weisman@ed.gov215-656-6456

• To provide feedback to my supervisor, contact:Jo Ann Borel, Supervisorjoann.borel@ed.gov281-758-8122

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EvaluationEvaluation

Your attention is appreciated at today’s session!

To provide feedback to me and my supervisor, please complete an evaluation form.

Thank you!!!

QUESTIONS?