DYNAMICS OF VERIFICATION 2013-2014A graduate level verification course

ISFAA Spring Conference April 16, 2013

TODAY’S INSTRUCTORSSue Allmon, WGU Indiana Lori Love, UIndy

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Guiding Principles

Federal Register

Dear Colleague Letters

Electronic Announcements

Program Integrity Questions & Answers

NASFAA News

SYLLABUS 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

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

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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

Validating Tax Information

Obtain Tax Return Transcript Student

Online (www.irs.gov) Telephone (1.800.908.9946) Form 4506T-EZ or 4605T

fax or mail form Local tax center

Institution Certified by IRS to request & collect tax

transcripts

Third party Vendor requests & collects transcripts

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GEN-12-07 and 11/2/12 Electronic Announcement expires after 2012-2013

GEN-11-13 governs 2013-2014

ED Reaffirms that Paper Copies of Tax Returns Generally Not Acceptable for 2013-14 Verification

Validating Tax Information Expiration of 2012-2013 special

situations

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

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Students only eligible for unsubsidized Title IV funding are not required to complete the verification process.

Tracking Groups

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

Location of Tracking Flag on ISIR

Tracking Group V1

Standard Same items as for 2012-2013

For all Household size Number in college Child support paid if reported on FAFSA SNAP if reported on FAFSA

Taxfilers 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

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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

Tracking Group V3 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

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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.

Tracking Group V4 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……..

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Question: Can we roll over identity and statement of educational purpose?

Answer: If identity is verified, applicant may not be selected to verify identity.

Tracking Group V4 continued Identity and statement of

educational purpose Government issued photo ID Educational purpose statement provided by

DE and cannot be altered

In-person 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

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Aggregate form or multiple forms for V5 group?

Tracking Group V5 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

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 66954-

66958) http://www.ifap.ed.gov/fregisters/FR102910Final.html

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/dpcletters/GEN1211.html

Federal Notice on 2013-2014 Verification Changes http://ifap.ed.gov/fregisters/attachments/

FRO71212FAFSA.pdf

VERIFICATION RESOURCES VIA FSA Q&A on Program Integrity website:

http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html

2013-2014 Verification – Suggested Text http://ifap.ed.gov/eannouncements/

011813VerificationSuggested Text1314.html

2013-2014 Application and Verification Guide http://ifap.ed.gov/fsahandbook/

1314FSAHandbookAVG.html

Acceptable IRS Documentation for 2013-2014 Verification http://ifap.ed.gov/eannouncements/

011813VerificationSuggested Text1314.html

VERIFICATION RESOURCES VIA FSA 2013-2014 Electronic Data Exchange (EDE) Technical

Reference http://ifap.ed.gov/edetechref/attachments/

1314EDETechRef1212Update.pdf

2013-2014 ISIR Guide 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/

082112LimitedCircumstancesWhenSignedCopyofTaxReturnisAcceptable.html

DISCUSSION BOARD• 2013-2014 implementation