VerificationSharing Ideas & Panel Discussion

Panel MembersJanie Burns Bethel University

Celia Bradley Middle Tennessee State UniversityAmanda Heath TTC Covington

Willie Thomas Chattanooga State CCJeanne Hinchee Chattanooga State CC

Agenda

Share verification processesPanel Discussion

Policy Questions for the Fed?

Janie BurnsUniversity Financial Aid Director

Outsourcing Verification

• We contract with EdFinancial to process verification

• We collect IRS Tax Transcripts & verification worksheets

• They request any conflicting information documents

• We determine our policy and procedures, and what documents we accept

Outsourcing Procedures

• Develop policy and procedures• Scan documents when received from students• Add EdFinancial document• EdFinancial accesses our system• When done – documents are marked complete• Reports pulled by each of us

Outsourcing Pros & Cons

Pros• Number verified per day is not limited to one or two

staff members• Highly trained personnel that specialize in verification• Cost compatible to hiring own staff members

o Without staff turnover – training –seasonal hire – cost per file

Cons• NONE

2012–2013 FAFSA Verification-IRS Tax Return Transcript Matrix

2012–2013 FAFSA Information Requiring Verification

2012–2013 FAFSA Q#

(Student and Parent)

2012–2013 ISIR Field#

(Student and Parent)

2011 IRS Tax Return Transcript Item 2011 IRS 1040

Line #2011 IRS 1040A

Line #2011 IRS 1040EZ

Line #

Adjusted Gross Income 35 and 83 42 and 106 Adjusted Gross Income Per Computer 37 21 4

Income Tax Paid 36 and 84 43 and 107

For IRS Form 1040 Transcripts:—Income Tax After Credits Per ComputerFor IRS Form 1040A Transcripts:—Tentative Tax Per ComputerFor IRS Form 1040EZ Transcripts:—Total Tax Liability TP Figures Per Computer

55 3510

Education Credits 43a and 91a 50 and 114 Education Credit Per Computer 49 31 N/A

IRA Deductions and Payments 44b and 92b 57 and 121KEOGH/SEP Contribution Deduction + IRA Deduction Per Computer

28 + 32 17 N/A

Tax Exempt Interest Income 44d and 92d 59 and 123 Tax-Exempt Interest 8b 8b N/A

Untaxed Portions of IRA Distributions 44e and 92e 60 and 124Total IRA Distributions – Taxable IRA Distributions

15a – 15b 11a – 11b N/A

Untaxed Portions of Pensions 44f and 92f 61 and 125Total Pensions and Annuities – Taxable Pension/Annuity Amount

16a – 16b 12a – 12b N/A

Notes

The 2012–2013 FAFSA Verification-IRS Tax Return Transcript Matrix is applicable only to IRS tax filers (IRS Form 1040, 1040A, and 1040EZ) and includes only the income information for tax filers required by the Department to be verified for 2012–2013.

IRS Tax Return Transcript—Shows most line items from a tax filer's original tax return (Form 1040, 1040A or 1040EZ). An IRS Tax Return Transcript does not include any information from an amended tax return.

Per Computer—A value calculated by the IRS that is present on certain items of an IRS Tax Return Transcript. The Per Computer amount must be used for verification even if it is different than what was reported by the tax filer to the IRS.

Married Filing Separately—An applicant or an applicant's parent(s) who filed or will file his or her income tax return as "Married Filing Separately" or who is married to someone other than the individual included on a joint income tax return must provide separate IRS Tax Return Transcripts for each person whose information is included on the FAFSA.

IRS Tax Return Matrixhttp://ifap.ed.gov/eannouncements/attachments/022412Verification1213IRSTaxReturnMatrix.xls

Celia Bradley

MTSU Verification Process

• Students notified via e-mail to log into self-service to review unsatisfied requirements

• Verify emancipated minor and legal guardianship • Verification tab created for the Financial Aid Office

website• Student worker updates self-service with documents

submitted• All documents submitted: File reviewed by full-time

verification clerk • Missing documents: Filed in missing documents cabinet• Corrections made through our Banner system and

double checked after correction(s) processed• Completed files scanned, checked and shredded

MTSU - IRS Data Retrieval Process• FAFSA received with successful IRS Data Retrieval

Tax return requirement is automatically updated with a “W” (waived)

• FAFSA changed after IRS Data Retrieval match Tax return requirement changed to “N” (needed) and

tax return transcript is required

• IRS Data Retrieval Tool used successfully through the FAFSA correction process

Tax return requirement automatically updated with a “W”. If this completes all missing requirements, the student will appear on a list of files ready to verify.

MTSU Process - Filed IRS Extension

Created a form to collect the following information/certification:

Must submit the following: • Signed copy of 2010 tax return, schedules and W-2s• IRS Form 4868 – Application for Automatic Extension of Time to File US

Individual Tax Return• IRS approval of extension beyond automatic six-month extension• All 2011 W-2s for student/parent filing extension• Self employed: Certify estimated 2011 AGI and tax paid figures

Must agree to the following:• To utilize IRS Data Retrieval Tool or submit tax return transcript after 2011

tax return has been filed• Agree to repay any funds the student is no longer eligible to receive after

FAFSA is corrected • Understand a hold is placed on the Spring aid until verification is completed .

Tennessee Technology Center @ Covington

Amanda Heath

Verification Documentation

• If a student/parent uses the IRS Data Retrieval Tool successfully and the ISIR has a 02 code, the student/parent will only be required to complete the Verification Worksheet.

• If a student/parent does not use the IRS Data Retrieval Tool and the ISIR has anything but a 02 code, the student/parent will be required to complete the Verification Worksheet and provide an IRS Tax Transcript. 

• If a student/parent did not file a tax return, the student/parent will complete the Verification Worksheet, & provide W2s. If the student/parent states they did not work, the school may require the student/parent to get a letter from the IRS confirming there are no W-2s on file.

Verification Questions• Are there any instances when we can accept a

copy of the tax return?• If the student/parent did not indicate receiving

SNAP (food stamps), but they mark yes on the verification worksheet – is that conflicting information?

• Please explain the Asset Threshold Exceeded field on the ISIR.

Willie Thomas

Verification ProcessStudent submits

FAFSA

CPS selects students for verification

Students who answered yes to emancipated minor, legal guardianship, or homeless youth are selected

Requirements are posted on Student’s record

If IRS Data Retrieval no transcript required

No IRS Data Retrieval Transcript Required

Student notified via

email

Student completes on-

line Verification Worksheet

Students who did not use the IRS retrieval submits IRS tax transcripts

Verification Process IRS tax

transcripts scanned into BDMS

Verification Worksheets uploaded intoBDMS overnight

Verification documents indexed

Post information in system (Banner)

Discrepancies: students are notified via email

Corrections are sent to CPS via Banner

Verification Complete

Student’s file is packaged and awarded

overnight

Panel Discussion and Questions