IRS Transcripts: Request, Availability, and Retrieval Tool

1. Session 28 Internal Revenue Service Tracey Martin, Internal Revenue Service | Nov-Dec. 2016 Kerri Moseley-Hobbs, U.S. Department of Education 2016 FSA Training Conference for Financial Aid Professionals

2. Topics of Discussion • Tax Return Transcripts • Types of Transcripts • Availability of Transcripts • Requesting Tax Return Information • IRS Data Retrieval Tool (IRS DRT) • IRS Transcripts Requests • Automated Tools/Recent Changes • Form 4506-T

3. Topics of Discussion con’t • IRS Service Delivery • Calling the IRS • Taxpayer Assistance Centers • Brief Overview of Educational Tax Benefits

4. IRS Transcripts • Tax Return Transcripts • Originally filed return information • Tax Account Transcripts • Basic transactional line items of amended and/or adjusted information • Record of Account (ROA) • Combination of tax return and tax account transcripts, includes original and amended data 4

5. IRS Transcripts • Verification of Non-filing (VONF) • Letter, not transcript, verifying that the IRS does not have a return on file as of the date of the VONF request • Does not verify or validate if requestor was required to file or not • Institutions may accept alternative documentation from the IRS that indicates non-filing status if the documentation includes tax year, and individual identifiers (name, ssn, etc.) • Wage & Income Transcripts • Report of all income reported by third-party, including income reported on W-2, F1099, F1098, F5498 5

6. IRS Transcripts • Tax Return Database View (TRDBV) • Alternative transcript for those who cannot get a transcript through other methods because more than one tax return was filed • See U. S. Department of Education Dear Colleague Letter GEN-15-11 6

7. IRS Transcripts: Availability 7

8. IRS Transcripts: Availability 8

9. 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 9

10. IRS Data Retrieval Tool • Embedded link within FAFSA on the Web • Applicants must successfully authenticate on the FAFSA using information from the filed tax return (e.g. tax filing status, address) • 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 (does not include adjustments, changes, or amendments) • 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 10

11. IRS Transcripts: Ordering • Form 4506-T • Paper form submitted via postal mail • Allow 5-10 business days to receive requested transcript to address of record • If requesting the transcript be mailed to a third-party, be sure to include the specific address on Line 5 11

12. IRS Transcripts: Ordering • Transcripts Toll free automated telephone line • 1-800-908-9946 • Allow 5-10 calendar days to receive Tax Return or Tax Account transcript to address of record • IRS.gov - http://www.irs.gov/Individuals/Get-Transcript • GetTranscript By Mail • GetTranscript Online 12

13. IRS Transcripts – Get Transcript GetTranscript is an IRS online service that provides an electronic copy of an official IRS Transcripts • GetTranscript By Mail • Delivers transcript in 5-10 calendar days via postal mail to the address of record • Only Return and Account transcripts available • Authentication required 13

14. IRS Transcripts – Get Transcript • GetTranscript Online • Immediately displays PDF version of transcript for users to view, print, and/or save • All transcripts and VoNF available • TRDBV not available • Additional authentication required to establish a user account • Get Transcript Online is IRS’ preferred Transcript delivery channel 14

15. IRS Transcripts – Get Transcript Online • The GetTranscript Online tool uses a new enhanced two-step, multi-factor authentication process that requires the user to register before submitting a transcript request. • To use the new Get Transcript Online tool, the user must have • (1) access to a valid email address • (2) a text-enabled mobile phone (pay-as-you-go plans cannot be used) and • (3) specific financial account numbers (such as a credit card number or an account number for a home mortgage or auto loan) 15

16. IRS Transcripts – Get Transcript Online • New Authentication Process (con’t) •  A tax filer who is not able to successfully register for the Get Transcript Online, will be able to request a tax return transcript using one of the other methods • See U.S. Department of Education Electronic Announcement published on July 26, 2016 on the Information for Financial Aid Professionals (IFAP) website 16

17. Web First Service Approach • Encourages individual taxpayers to request transcripts via GetTranscript on IRS.gov • Transcripts can also be requested by automated 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 17

18. IRS Tax Assistance Centers • Appointment Only Services • Most of the IRS Taxpayer Assistance Centers (TAC) have converted to appointment service and all of them will be providing it by the end of 2016 • TAC should not be used as a routine resource for documentation request for Title IV verification • The IRS encourages people seeking tax assistance to first see if their answer is available on IRS.gov • For taxpayers who still need to interact with the IRS in person: • Call special toll-free number, 1-844-545-5640, to reach an IRS representative. Representatives can help resolve a tax issue or schedule an appointment at a local IRS TAC office to get assistance 18

19. IRS Resources • Tax law/IRS policy • Interactive Tax Assistance (ITA) on irs.gov • Publication 17 • Publication 501 • Publication 519 • Publication 1577 • 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 19

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

21. Education Tax Credits • American Opportunity Tax CreditWorth up to $2,500 per student • Available for the first four years of postsecondary education • Is partially refundable • Lifetime Learning Credit • Worth up to $2,000 per return, not per student • Is unlimited in the number of years it can be claimed • Is not refundable

22. Tuition Statement Form 1098-T

23. Form 1098-T is… • Provided annually by nearly all postsecondary education institutions for most students • Foreign institutions that provide federal student aid under Title IV ARE required to provide 1098T information to those students. This is based on a foreign school being an eligible institution as defined by section 481 of the Higher Education Act of 1965 • Used by tax filer to calculate benefits and to verify education spending for education related tax benefits • Form 1098-T may not list all the information a student/parent needs for claiming an education credit

24. 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

25. 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

26. QUESTIONS?