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I Need IRS Tax Transcripts NOW: Tips and Tricks of IRS Tax Transcript Retrieval

I Need IRS Tax Transcripts NOW: Tips and Tricks of IRS Tax Transcript Retrieval. December 2012. Presented by Maria Kirgan Senior Director of Customer Happiness & Product Management. Content. Verification Requirements IRS Data Retrieval Tool IRS Tax Transcript Retrieval Methods

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I Need IRS Tax Transcripts NOW: Tips and Tricks of IRS Tax Transcript Retrieval

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  1. I Need IRS Tax Transcripts NOW: Tips and Tricks of IRS Tax Transcript Retrieval December 2012 Presented by Maria Kirgan Senior Director of Customer Happiness & Product Management

  2. Content Verification Requirements IRS Data Retrieval Tool IRS Tax Transcript Retrieval Methods IRS Tax Transcripts Veri-Tax: Your Tax Transcript Retrieval Partner

  3. Department of Education 2012-2013 Financial Aid Changes The Department of Education requires students to submit IRS income data in order to be qualified for Title IV financial aid. Students and educational institutions have multiple options on how to retrieve the required tax transcripts. Publication Date: February 23, 2011 Subject: Enhancements to the FAFSA-IRS Data Retrieval Process Dear Colleague Letter GEN-11-03 Since most applicants can quickly and easily access IRS data through the FAFSA-IRS Data Retrieval process, we no longer consider it reasonable for an institution to accept anything less reliable than direct IRS-supplied evidence for verification of income data. Therefore, if an applicant selected for verification has not successfully transferred information from the IRS, or one who did transfer the information but changed it, the ED expects the institution to require the applicant, and if necessary the applicant's parents, to provide an official IRS transcript of their federal income tax information.

  4. IRS Data Retrieval Tool

  5. IRS Data Retrieval Tool This is the easiest way to retrieve tax data and should be attempted to use by all students and parents. • The IRS Data Retrieval Tool allows students and parents to access the IRS tax return information needed to complete the Free Application for Federal Student Aid (FAFSA). Students and parents may transfer the data directly into their FAFSA. • If you do not use the IRS Data Retrieval Tool to provide tax information, you may be required to obtain an official tax transcript from the IRS. • Who can use the IRS Data Retrieval tool? • Applicants who are completing an initial FAFSA, completing a renewal FAFSA, or making corrections to their initial FAFSA • Student applicants or parents who: • Have a valid Social Security Number • Have a valid Federal Student Aid Personal Identification Number (PIN) • Have completed and filed a 2011 Federal Tax Return

  6. Using the IRS Data Retrieval Tool FAFSA will direct a student to retrieve tax information directly from the IRS using the DRT. DRT screening questions: • Tax filing status Married filed separately • Tax filing status is Head of Household • Amended taxes filed • Foreign tax returns • Recently filed taxes • If a box is checked, other than “None of the above”, the student/parent is not eligible to transfer information from the IRS DRT. • A tax transcript will be required for “Financial Information” verification. • Update: Amended Tax Returns require a signed copy of the relevant tax return AND a signed copy of the 1040X that was filed with the IRS.

  7. 2013-14 Enhancements to IRS Data Retrieval Tool Preview!! Enhanced IRS DRT Questions for 2013-14! FSA Fall Conference Session 26. (November 2012). FAFSA & Application Processing Update. Presented by Misty Parkinson and Jody Sears, U.S. Department of Education

  8. IRS DRT • Cannot retrieve data if address is entered incorrectly. • Must be the same address on 2011 1040. • Incorrect address abbreviations (st., apt., unit, ave., etc.) will not successfully retrieve tax data. • Ineligible to use DRT if: • Marital status changed after 12/31/2011 • Student did not apply using FAFSA On The Web • Did not file 2011 taxes

  9. Transfer data from DRT to FAFSA

  10. 2012-13 IRS DRT Request Flags • Any ISIR Request Flag Value other than ’02’ requires additional documentation • ISIR code ‘02’ means the tax data was successfully retrieved by the DRT, transferred to FAFSA, and was not changed by the user • All other codes may require verification

  11. Acceptable Documentation Update for 2012-13 Update November 2, 2012 • For the remainder of the 2012-2013 award year, the alternative documentation is acceptable in instances where the tax filer had attempted to request an IRS Tax Return Transcript but was unsuccessful. • Alternative Documentation:   • A signed copy of the 2011 IRS tax return   • And • A signed copy of the IRS response stating the requests was unsuccessful • Mailed letter from IRS • Printed screenshot • And • A signed IRS Form 4506T-EZ or IRS Form 4506-T • If the institution has reason to believe that the information provided on the signed copy of the paper tax return may not be accurate, it must, send the IRS Form 4506-T to the IRS and wait for the IRS of the Tax Return Transcript or the IRS notification that a transcript is not available for that tax filer. Update Posted Date: November 2, 2012 Author: David A. Bergeron, Acting Assistant Secretary for Postsecondary Education Subject: Acceptable Documentation Update for 2012-2013 Award Year Verification

  12. Identify Theft Verification Documentation To complete verification for victims of identity theft submit: Signed copy of IRS income tax return AND One of the following: IRS Form 14039, “Identity Theft Affidavit” Signed, dated statement indicating victim of identity theft and IRS is investigating Copy of the police report filed by the tax filer

  13. IRS Tax Transcript Retrieval Methods

  14. Tax Transcripts Retrieval Methods *A paper copy of the IRS tax transcript should arrive in the mail within five to ten days from the date the IRS receives the request

  15. Method 1: Online www.IRS.gov

  16. Method 1: Online www.IRS.gov • IRS mails transcripts back to the address on file • If the IRS cannot process the transcript request, a notification is not usually sent to the student • Account Transcript and Return Transcript are the only transcripts that can be ordered though this method

  17. Method 2: Phone Requests Students can call the IRS and request a transcript be mailed back to them IRS offices have stopped faxing transcripts through phone requests The IRS has become inundated with phone requests and has asked that students do not order by phone Students and Financial Aid offices have spent hours on hold trying to get transcripts

  18. Method 3: Form 4506T-EZ vs. Form 4506-T

  19. Form 4506-T Name and SSN Address on file with the IRS 999 Broadway Blvd. Los Angeles, CA 90001 474 Central Ave. Portland, OR 90098 Address of third party recipient • Common reasons for rejection: • Address is not the one on file with the IRS • Unreadable/illegible text • Tips: • Enter multiple addresses on line 4 • Use 2011 tax return address

  20. 4506-T Enter 1040 Check transcript type • Common reasons for rejection: • Line 6 is not completed • A box is not checked • Tips: • Check Record of Account (Box C) which includes both Return Transcript (Box A) and Account Transcript (Box B) information, as well as amended tax data

  21. 4506-T Enter tax year(s) requested* Taxpayer’s signature Date *2011 transcript not available for 3-5 weeks after e-filing and 6-8 weeks after filing by mail. If requested prematurely, “No Record of Return Found” will be returned. • Common reasons for rejection: • Missing year, signature, or date • Signature date expires after 120 days • Signature is unreadable • Tip: • Very important that the signature is legible. The name must be identifiable.

  22. IRS Tax Transcripts

  23. 2012-13 Required Verification Items

  24. 2013-14 Verification Tracking Flag Groups • UPDATE for 2013-14 • Income Verification required for flags V1 and V5 FSA Fall Conference Session 26. (November 2012). FAFSA & Application Processing Update. Presented by Misty Parkinson and Jody Sears, U.S. Department of Education

  25. Transcripts Record of Account (Box C) Return Transcript (Box A)

  26. Line Items Posted Date: March 16, 2012 Subject: Revised 2012-2013 FAFSA Verification - IRS Tax Return Transcript Matrix • Author: Jeff Baker, Director, Policy Liaison and Implementation, Federal Student Aid

  27. Method 4 Veri-Tax: Your Tax Transcript Retrieval Partner

  28. Who is Veri-Tax? • In 1999, Veri-Tax pioneered the electronic delivery of IRS tax transcripts for the mortgage, lending, and credit card industries. • Veri-Tax currently processes more than 350,000 tax transcripts per month. • Veri-Tax is certified with the highest security standards available (SAS70/SSAE 16 Type II). • Veri-Tax offers a full suite of products including: • Form 4506-T Processing/ Tax Transcript Retrieval • SSN Verifications • Mortgage Fraud Reports • Employment Verifications • Flood Zone Determinations • Bankruptcy Reports

  29. Veri-Tax’s IRS Tax Transcript Retrieval • Veri-Tax is a disinterested third party acting as the middle entity between the financial aid office and the IRS • Veri-Tax submits 4506-Ts and retrieves transcripts quickly through a customized electronic delivery and retrieval method with the IRS • Veri-Tax has over 13 years of experience working with the IRS, and interfaces regularly with them to stay informed of the ever-changing tax transcript request process. The IRS keeps Veri-Tax informed of their scheduled downtime and system maintenance disruptions before they occur. • Veri-Tax typically completes the entire tax transcript retrieval process within 24 - 48 hours Taxpayer signs 4506-T Submits form to VT QC form & sends to IRS Creates summary & returns transcripts Returns transcripts 29

  30. Online Ordering Portal • No software needed • Form 4506-T generation • Multiple user authorization • levels • Multiple locations can be set • up under one account • Online tracking and reporting • 24-48 hour turnaround time

  31. Online Ordering Portal • Generate a pre-populated 4506-T • for the student/parent to sign • Or upload a signed 4506-T • Track the status of • each order by order number, • reference number (student ID), • or SSN

  32. Generated 4506-T

  33. Veri-Tax’s Quality Control Process • Veri-Tax notifies you within 30 minutes when an order is incomplete, completed incorrectly, or has other issues before the 4506-T is sent to the IRS. • Users can make the necessary changes, and resubmit the Form 4506-T at no cost! • Some reasons for rejection include:

  34. Online Ordering Portal

  35. Online Order Details

  36. Summary Sheet • Summary sheet includes taxpayer/student information and custom reference number • Highlights FAFSA required verification line items • Multiple years shown on one table for crossover student requests • Can be customized for each school’s verification process

  37. Veri-Tax’s Features and Benefits Customer Happiness is top priority!

  38. E-Signatures Coming Soon!! • The IRS will begin allowing electronic signatures on the 4506-T beginning January 7, 2013! • Two e-signature options: • Option 1: Use e-signatures through Veri-Tax’s Veri-Sign solution • Option 2: Use your existing e-sign vendor • *Must be approved as an authorized vendor by Veri-Tax • Both options Do NOT need the student to print out, sign, and fax/email the forms back to the school. • Once a financial aid officer creates the tax transcript request order in Veri-Tax’s online portal, the student will be sent an email notification to e-sign the 4506-T. Once signed, the IRS will complete the order in 24-48 hours. • E-sign helps streamline the verification process • for both you and your students!

  39. Summary: Transcript Retrieval Options

  40. Questions? Maria Kirgan Senior Director of Customer Happiness & Product Management (949) 783-2160 maria.kirgan@veri-tax.com 30 Executive Park, Suite 200 Irvine, CA 92614 Customer Happiness Team: (800) 969-5100 Website: www.veri-tax.com/verification Email: CustomerHappiness@veri-tax.com Mathew Hastings Senior Account Executive Specializing in Customer Happiness (949) 783-2123 mathew.hastings@veri-tax.com

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