1. Verification Sharing Ideas & Panel Discussion

2. Panel Members
Janie Burns Bethel University Celia Bradley Middle Tennessee State University Amanda Heath TTC Covington Willie Thomas Chattanooga State CC Jeanne Hinchee Chattanooga State CC

3. Agenda Share verification processes Panel Discussion
Policy Questions for the Fed?

4. University Financial Aid Director
Janie Burns
University Financial Aid Director

5. 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

6. 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

7. Outsourcing Pros & Cons
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
Without staff turnover – training –seasonal hire – cost per file
Cons
NONE

8. 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 Computer For IRS Form 1040A Transcripts: —Tentative Tax Per Computer For IRS Form 1040EZ Transcripts: —Total Tax Liability TP Figures Per Computer 55 35 10
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 121
KEOGH/SEP Contribution Deduction + IRA Deduction Per Computer 17
Tax Exempt Interest Income
44d and 92d
59 and 123
Tax-Exempt Interest 8b
Untaxed Portions of IRA Distributions
44e and 92e
60 and 124
Total IRA Distributions – Taxable IRA Distributions
15a – 15b
11a – 11b
Untaxed Portions of Pensions
44f and 92f
61 and 125
Total Pensions and Annuities – Taxable Pension/Annuity Amount
16a – 16b
12a – 12b
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 Matrix

9. Celia Bradley

10. MTSU Verification Process
Students notified via 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

11. 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.

12. 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.

13. Tennessee Technology Center @ Covington
Amanda Heath

14. 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.

15. 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.

16. Willie Thomas

17. Verification Process Student submits FAFSA
Requirements are posted on Student’s record
Student notified via
CPS selects students for verification
If IRS Data Retrieval no transcript required
Student completes on-line Verification Worksheet
Students who answered yes to emancipated minor, legal guardianship, or homeless youth are selected
No IRS Data Retrieval Transcript Required
Students who did not use the IRS retrieval submits IRS tax transcripts

18. Verification Complete Student’s file is packaged and awarded overnight
Verification Process
IRS tax transcripts scanned into BDMS
Verification documents indexed
Discrepancies: students are notified via
Verification Worksheets uploaded into
BDMS overnight
Post information in system (Banner)
Corrections are sent to CPS via Banner
Verification Complete
Student’s file is packaged and awarded overnight

19. Panel Discussion and Questions