Internal Revenue Service

1. Internal Revenue Service Session 36 Tracey Martin, IRS, and Kerri Moseley-Hobbs | Dec. 2015 U.S. Department of Education 2015 FSA Training Conference for Financial Aid Professionals

2. Topics of Discussion • Getting Your Tax Return Information • IRS Data Retrieval Tool (IRS DRT) • IRS Transcripts • Automated Tools • Form 4506-T • IRS Service Delivery • Calling the IRS • Taxpayer Assistance Centers

3. IRS Data Retrieval Tool Embedded link within FAFSA on the Web Applicants must successfully authenticate using information from the filed tax return Tax return data is available only after the return has posted to the IRS system Retrieves specific tax return data from an originally filed tax return and displays data on applicants’ browser Upon request, transfers the displayed data directly into specific questions on the FAFSA IRS Transcript usually not required if data is successfully transferred and not modified by applicant 3

4. IRS Transcripts • Tax Return transcripts • Anyone who filed a tax return, including first time filers • Tax Account transcripts • Anyone who filed a tax return/amended return, including first time filers • Record of Account • Anyone who filed a tax return/amended tax return, including first time filers • Verification of Non-filing • Non-filer; letter not a transcript • Information Returns Transcripts (W-2, 1099, 1098, 5498) • Anyone who has income that was reported to the IRS • Tax Return Database View (TRDBV) • Taxpayer who filed an original tax return and can not get a normal transcript through other methods because of identify theft or duplicate tax return posting 4

5. IRS Transcripts: Availability • Electronically filed Tax Returns • $0 balance/refund returns: Generally available 2-3 weeks after the return has been accepted by IRS • Balance due/partial pay returns: Generally available by end of June or 3-4 weeks after the IRS receives the full/final payment • Paper Tax Returns • $0 balance/refund returns: Generally available 6-8 weeks after the IRS receives the return • Balance due/partial pay returns: Generally available by end of June/July • Amended Returns • Must be filed as a paper return • Generally available 12 weeks after the IRS receives the amended return • ID Theft Cases • Must be filed as a paper return • Generally available 8-11 weeks after the IRS receives the duplicate return 5

6. IRS Transcripts: Availability 6

7. IRS Transcripts: Availability 7

8. IRS Transcripts: Common Scenarios • A student/parent/spouse says that they cannot receive an IRS tax transcript from a regional office • A parent/student/spouse says they filed their taxes, but their information is not available for a transcript • A parent/student says that they cannot get a copy of their tax information, and the IRS says they can’t give them anything in writing either • A student/parent/spouse says that he or she cannot get a copy of their tax information, and the IRS says it is because they owe money on the current year’s return • A student/parent/spouse claims to be a victim of IRS identity theft says that he or she cannot get a copy of the Tax Return Data Base View (TRDBV) 8

9. IRS Transcripts: Ordering • Form 4506-T • Manual process; up to 10 business days to process request and send transcript to the specified address • Third party address identified on Line 5 must be very specific • Transcript Toll free telephone line • Self service; 5-10 calendar day delivery to the address on file • 1-800-908-9946 • Get Transcript • Self service; web app; at this time ONLY delivery by mail • http://www.irs.gov/Individuals/Get-Transcript 9

10. IRS Transcripts – Get Transcript • Get Transcript By Mail is an IRS online tool that: • Is accessible after taxpayers authenticate • Additional language added to assist users with Authentication requirements • Delivers only the Tax Return or Tax Account Transcripts • Does not provide copy of TRDBV • Delivers transcript by mail in 5-10 calendar days • Get Transcript By Mail is IRS’s preferred Transcript delivery channel 10

11. Web First Service Approach Encourages individual taxpayers to request transcripts by mail on IRS.gov Transcripts can also be requested by phone or by completing Form 4506-T In rare circumstances, IRS will provide transcripts via live assistance Offering IRS automated self service tools to the taxpayer will allow IRS employees to focus on more complex taxpayer account issues 11

12. IRS Resources • Resource page for Students • http://www.irs.gov/Individuals/Students • Provides information and links • Resource page for Parents • http://www.irs.gov/Individuals/Parents • Provides information and links • Resource page for Identity Theft Victims • http://www.irs.gov/Identity-Protection • Provides information and links 12

13. Education Tax Benefits Overview • Education tax benefits are a major source of federal financial aid • Knowing about these credits benefits your students, their families and your school • Calculating eligible expenses for each provision varies by student and credit • Help all those who qualify receive the federal tax benefits they deserve and need to help pay for higher education • Claiming education credits can be complex, and some families leave money on the table

14. Education Tax Credits • American Opportunity Tax Credit • Lifetime Learning Credit

15. Tuition Statement Form 1098-T

16. Form 1098-T is… • Filed annually by nearly all post-secondary education institutions for most students • Used by IRS to verify education spending for education related tax benefits • Form 1098-T may not list all the information a student/parents need for claiming an education credit

17. Form 1098-T and Claiming a Credit • Use Form 1098-T as a guide • Student/parents make the choice which dollar of expense is used for which benefit • For tax purposes schools do not determine the best way to allocate expenses across benefits – this is for the student to do

18. There are tools to help • IRS.gov – Tax Benefits for Education: Information Center • IRS.gov - Education Credits – AOTC and LLC • Publication 970, Tax Benefits for Education • Form 8863, Education Credit Instructions • Publication 929, Tax Rules for Children and Dependents • IRS videos can be found at www.youtube.com • Department of Education website at: https://studentaid.ed.gov/types/tax-benefits • Pub. 5081, Education Credit Online Resource Tool • To help determine if students are eligible for education credits, use the IRS’ Interactive Tax Assistant tool available on IRS.gov

19. QUESTIONS?