Financial Aid Change for 2012-2013

 2012-13 FAFSA & IRS Data Retrieval Process

Beginning with the 2012-13 academic year, financial aid offices will no longer be able to accept signed copies of federal tax returns from students and parents for FAFSA Verification purposes.

There is an easier, faster way to provide tax information for the Free Application for Federal Student Aid (FAFSA). When completing the FAFSA you will be prompted to enter your PIN and link to the IRS web site. The retrieval process will display your tax information and allow you to transfer it to your FAFSA. Our office encourages everyone to retrieve their tax data if you and your parent(s) have filed your 2011 tax return(s) prior to completing the FAFSA. Families who do not use the IRS Data Retrieval process may be required to submit an IRS tax return transcript directly from the IRS to complete the federal verification process.

Option 1. Use the IRS Data Retrieval Process when completing the FAFSA online. FAFSA provides instructions to link to the IRS while completing the FAFSA. Certain data elements such as AGI and taxes paid will be entered for you on the FAFSA. The data is considered "verified" for FAFSA purposes.

 ·         Students and parents should apply for a Personal Identification Number (PIN). The PIN is an electronic signature necessary for quick completion of the online process. To apply go to: www.PIN.ed.gov 

 ·         The Federal Tax Return must be filed at least two weeks (if filing electronically) and eight weeks (if filing paper return) before using the FAFSA IRS Data Retrieval Process to allow the IRS time to process the return.

 ·         Our office will still need to collect a Verification Worksheet to verify data not provided by the FAFSA IRS Data Retrieval Process (ex: copies of W-2 and 1099 forms, institutional verification forms for such items as household size, number in college, and untaxed income.)

 ·         Certain tax filers may not be able to use the IRS Data Retrieval and will need to request an IRS Tax Return Transcript 

To successfully use this option you must:
o    Have a federal tax return filed with the IRS.
o    Have a valid social security number.
o    Have a Federal Aid Personal Identification Number (PIN)

You will not be able to use this option if:
o    Your marital status changes after December 31 of the same tax year.
o    You filed married filing separately.
o    You filed an amended return.
o    You filed a foreign tax return.

Option 2. If selected for verification, you will have to submit an official tax return transcript.

·         An official tax return transcript will be required for tax filers not able to use the IRS Data Retrieval process or who make changes to FAFSA data after using this process.

·         You will also be required to verify the following data elements:

o    Child support paid, the child(ren) for who it is paid, the person to whom it is paid.

o    Food Stamp Benefits. 

o    Other untaxed income

The Financial Aid Office appreciates your patience as we implement this new requirement of the U.S. Department of Education.

 How the IRS Data Retrieval Tool Works

When either a parent or student selects the IRS Data Retrieval option, the FAFSA Central Processing System (CPS) will:

Conduct a data match with the IRS.

·         Redirect you to a secure IRS website.

·         You will permit the IRS to transfer income data to the CPS Processor.

·         Successfully matched data will be noted on the FAFSA as, “Transferred from the IRS.”

A successful match between CPS and the IRS will:

·         Eliminate requesting federal income tax return transcripts, as long as FAFSA data fields are not subsequently changed on your FAFSA.

·         Avoids reporting errors and processing delays that can otherwise occur.

Please note that you may still be required to supply other income information as part of general verification process.

IRS Data Retrieval Once FAFSA Has Been Filed

The best way to verify income is by using the IRS Data Retrieval Tool that is part of FAFSA on the Web. If the student has not already used the tool, go to www.fafsa.gov, log in to the student’s FAFSA record, select “Make FAFSA Corrections,” and navigate to the Financial Information section of the form. From there, follow the instructions to determine if the student/parent is eligible to use the IRS Data Retrieval Tool to transfer 2011 IRS income tax information into the student’s FAFSA. It takes up to two weeks for IRS income information to be available for the IRS Data Retrieval Tool for electronic IRS tax return filers, and up to eight weeks for paper IRS tax return filers.

How to Obtain a Free Tax Return Transcript from the IRS

If your FAFSA is selected for verification, and you did not use the IRS Data Retrieval option or you changed the IRS data, you will be required to request a tax return transcript from IRS and submit it to the Financial Aid Office. Personal copies of tax returns can no longer be accepted.

Three ways to request your Tax Return Transcript: by phone, online, or by mail.

Please make sure you request a Tax Return Transcript. DO NOT request a Tax Account Transcript or Record of Account because they cannot be used for financial aid verification purposes.

• To order by phone: Call the IRS at 1-800-908-9946.

• To order online: Go to http://www.irs.gov/individuals/article/0,,id=232168,00.html?portlet=105.

• A tax return transcript can be ordered by mail: Complete Form 4506-T (Request for Transcript of Tax Return), available online at http://www.irs.gov/pub/irs-pdf/f4506t.pdf.

 Your transcript(s) will be mailed within 5 to 10 days from the IRS.