The Federal Department of Education has instituted some changes to the verification process for the 2012-2013 Award Year. According to the Federal Department of Education 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 IRS-supplied evidence for verification of income data.
Verification Process FAQ:
I HAVE BEEN SELECTED FOR VERIFICATION. WHAT DOES THIS MEAN TO ME?
Applicants selected for verification will need to complete a verification worksheet for 2012-2013. A major change this year is that Wingate University will no longer be able to accept signed copies of the IRS 1040 as a way to confirm the income reported on the FAFSA; Wingate will require you to request and submit a Tax Transcript from the IRS for both you and your parent (Dependent Students).
WHEN CAN I NOT USE THE IRS RETRIEVAL PROCESS?
The IRS Tax Retrieval may not be available for applicants in the following circumstances:
- A joint tax return was filed for 2011 and the student or the student’s parents have filed the FAFSA with a marital status of separated, divorced or widowed.
- If the tax filer is married to someone other than the individual included on the 2011 joint tax return.
- If the parent or student was not married in 2011 but is married at the time the FAFSA is filed. The current spouse’s income must be reported on the FAFSA.
- If the parents or the student is married but filed tax returns separately.
- If an amended tax return was filed.
I JUST FILED MY TAXES. WHEN WILL MY IRS DATA BE AVAILABLE?
In general, tax filers can anticipate that the IRS data will be available within:
- Two weeks if the tax return has been filed electronically
- Eight weeks if the tax returns have been mailed.
I DO NOT FILE A TAX RETURN. WHAT INFORMATION DO YOU NEED FROM ME?
You will be required to complete the verification worksheet and attest that an IRS 1040 has not and will not be filed and that the IRS 1040 is not required to be filed. Copies of all W-2 forms from all employers must be submitted to the Office of Student Financial Planning.
You may request a 2011 tax transcript from the IRS, free of charge, in one of three ways:
1. Online
- Go to http://www.irs.gov
- Look in "Tools" Section
- Click "Order a Tax Return or Account Transcript"
2. Telephone
- Call IRS @ 1-800-908-9946
3. Paper
- Download IRS Form 4506T-EZ
- Mail or fax the completed form to the appropriate address
2012-2013 Verification Forms:
Verification Worksheet for Dependent Students
Verification Worksheet for Independent Students
Eligibility Worksheet for Question 23 2012-2013
Tax Return Request Form (Form 4506T-EZ)
Special Circumstances Form
Verification (Glossary)
Adjusted Gross Income (AGI)
All taxable income less IRS allowable adjustments to income. This figure is drawn from an individual's federal tax return.
Income
The amount of money received from employment (salary, wages, and tips), profit from financial instruments (interest, dividends, and capital gains), or other sources (welfare, disability, child support, unemployment benefits, Social Security, and pensions).
Verification
The process a school follows to check the accuracy of the information reported by the student on the FAFSA. The information reported is compared against documents, such as signed federal tax forms and signed Verification Worksheets, the student provides to the school.
Verification Worksheet
A form sent by a school to students who are selected for verification by the Department of Education's Central Processing System (CPS).