DYNAMICS OF
VERIFICATION
2013-2014
A graduate level verification course
ISFAA Spring Conference April 16, 2013
TODAY’S
INSTRUCTORS
Sue Allmon, WGU Indiana
Lori Love, UIndy


Validating tax information
Tracking groups

V1 – V5

Updated guidance – Program Integrity
Q&A

Discussion board for 2013-2014
implementation

Verification Resources for 2013-2014
via FSA
VERIFICATION COURSE 2013
SYLLABUS
Guiding
Principles
Federal Register
Dear Colleague
Letters
Electronic
Announcements
Program Integrity
Questions &
Answers
NASFAA News
Validating Tax Information
(taxfiler)

IRS Data Retrieval Tool (DRT) is available to be
utilized by family




2-3 weeks after filing electronically
8-11 weeks if paper return
If taxes owed, may impact ability to use
Data elements for taxfiler transferred by IRS Data
Retrieval Tool (DRT)
IRS Request Flag = 02
 No additional tax information needed


Data elements for taxfiler where DRT not used or
information changed

Must obtain tax return transcript

Obtain Tax Return Transcript

Student




Institution


Certified by IRS to request & collect tax
transcripts
Third party

Vendor requests & collects transcripts
PROOF OF INCOME

Online (www.irs.gov)
Telephone (1.800.908.9946)
Form 4506T-EZ or 4605T
 fax or mail form
Local tax center
REMINDER: NONFILER
Validating Tax Information
Nonfilers
•
Signed
statement
certifying not
filed and not
required to
file for tax
year
•
Sources and
amounts of
income
earned
•
Copy of W2
for each
source

Acceptable circumstances for paper
return

Identity theft
Form 14039 filed with IRS
 Signed copy of paper return
 Copy of police report or signed statement
that filer was victim


Amended tax return
Signed copy of original paper return or tax
return transcript
 Signed copy of Form 1040X


Foreign tax returns

Converted into US dollars
FOR VERIFYING TAX INFO REPORTED

Expiration of 2012-2013 special
situations
SOURCE
Validating Tax Information
GEN-12-07 and
11/2/12
Electronic
Announcement
expires after
2012-2013
GEN-11-13
governs 20132014
ED Reaffirms
that Paper
Copies of Tax
Returns
Generally Not
Acceptable for
2013-14
Verification
Step towards customization

Five verification tracking groups






V1 – Standard
V2 – SNAP
V3 – Child support paid
V4 – Custom
V5 – Aggregate
DE asks that we not do ‘one size fits
all’ verification worksheet
AID VERIFICATION

UNSUBSIDIZED
Tracking Groups
Students only
eligible for
unsubsidized
Title IV
funding are
not required to
complete the
verification
process.
Location of Tracking Flag on ISIR
Tracking Group V1

Standard

Same items as for 2012-2013

For all





Taxfilers








Household size
Number in college
Child support paid if reported on FAFSA
SNAP if reported on FAFSA
AGI
US tax paid
Untaxed IRA distributions
Untaxed pensions
Education credits
IRA deductions
Tax-exempt interest
Nonfilers

Income earned from work
Tracking Group V2

SNAP

Signed statement from student (or parent if
dependent) certifying that they or a member of
household received SNAP in calendar years 2012
and/or 2013

Only have to verify if SNAP is noted on FAFSA

Student will only be selected for this group, if SNAP
noted on FAFSA

Child Support Paid

Signed statement from student (or
parent if dependent). Statement to
contain:
Name of person who paid child support
 Name of person to whom child support was
paid
 Name(s) of children for whom child support
was paid
 Amount of child support paid during the
calendar year


Only have to verify child support paid,
nothing else, unless you notice other
conflicting information
FOOD FOR THOUGHT
Tracking Group V3
Would you
consider
collecting
household
information to
match up
against child
support paid
to make sure
child isn’t in
the household
and counted
twice?
See FAFSA
question 91B
See AVG page
18
Custom

Child support paid

SNAP

High school completion status
Copy of diploma
 Copy of H.S. transcript with graduation date
 GED certificate
 Home schooled credential
 Academic transcript with 2 years completed
& fully transferrable to your institution


Identity and statement of educational
purpose

Next slide……..
MAINTAINS DOCUMENTATION

WHO
Tracking Group V4
Question:
How do you
plan to collect
high school
completion
status?
DE states that
documentation
may be
maintained by
another office
on campus as
long as there
is a clear audit
trail.
Identity and statement of
educational purpose
Government issued photo ID
 Educational purpose statement provided by
DE and cannot be altered


Assigned school official to collect



Date received
Name and title of school official
Not in-person
Notarized copy of government issued
photo ID
 Notarized copy of statement of
educational purpose
 Paper must be sent to school. School
must maintain paper copy, cannot accept
fax/email of items

SAYS
In-person
Answer: If
identity is
verified,
applicant may
not be
selected to
verify identity.
ED

Question:
Can we roll
over identity
and statement
of educational
purpose?
OF

DEPARTMENT
Tracking Group V4 continued
Aggregate

All data elements in V1 through V4
Only have to verify SNAP if indicated on
FAFSA
 Only have to verify child support paid if
amount is shown on FAFSA

TO COLLECT

HOW
Tracking Group V5
Aggregate
form or
multiple forms
for V5 group?
UPDATED GUIDANCE
REVIEW PROGRAM INTEGRITY – Q & A
HTTP://WWW2.ED.GOV/POLICY/HIGHERED/REG/HEARULEMAKING/2009/INTEGRITY-QA.HTML
VERIFICATION RESOURCES VIA FSA

10/29/10 Final Rule (Pages 66902-66913 and 6695466958)


iLibrary – Electronic Announcements


http://ifap.ed.gov/ifap/byAnnouncementType.jsp?type=7&
year=2012
Dear Colleague Letter - GEN-12-11


http://www.ifap.ed.gov/fregisters/FR102910Final.html
http://www.ifap.ed.gov/dpcletters/GEN1211.html
Federal Notice on 2013-2014 Verification Changes

http://ifap.ed.gov/fregisters/attachments/FRO71212FAFS
A.pdf
VERIFICATION RESOURCES VIA FSA

Q&A on Program Integrity website:


2013-2014 Verification – Suggested Text


http://ifap.ed.gov/eannouncements/011813VerificationSuggest
ed Text1314.html
2013-2014 Application and Verification Guide


http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/v
erification.html
http://ifap.ed.gov/fsahandbook/1314FSAHandbookAVG.html
Acceptable IRS Documentation for 2013-2014
Verification

http://ifap.ed.gov/eannouncements/011813VerificationSuggest
ed Text1314.html
VERIFICATION RESOURCES VIA FSA

2013-2014 Electronic Data Exchange (EDE) Technical
Reference


2013-2014 ISIR Guide


http://ifap.ed.gov/edetechref/attachments/1314EDETechRef121
2Update.pdf
http://ifap.ed.gov/isirguide/attachments/20132014ISIRGuide.pdf
Electronic Announcement on Limited Circumstances
When a Signed Copy of Tax Return or Other
Documentation is Acceptable for Completing Verification

http://www.ifap.ed.gov/eannouncements/082112LimitedCircums
tancesWhenSignedCopyofTaxReturnisAcceptable.html
DISCUSSION BOARD
•
2013-2014 implementation