1. …2013 – 14 and beyond… MASFAA Conference Samoset Resort, Rockport, Maine Verification Annmarie Weisman | 10.22.2012

2. Verification - Agenda Verification in 2013 - 14 What to verify Required Documentation Verification & IRS data IRS Data Retrieval process Tax return transcripts and exceptions Questions and Answers 2

3. 2013 – 2014 Verification

4. 2013-14 Verification Award Year begins July 1…verifying ISIRs begins in January 2013 Continuing small steps toward customized verification Items to be verified will be grouped Individual student’s ISIR will indicate which group of items to verify 4

5. 2013-14 Verification Items Retained items from 2012-13 Added two new items High school (HS) completion status Identity/Statement of Educational Purpose 5

6. Information to be Verified Effective in 2012-13, ED publishes a Federal Register Notice prior to beginning of each award year’s FAFSA processing listing possible verifiable items and acceptable documentation 12-13: published July 13, 2011 13-14: published July 12, 2012 SAR/ISIR will specify required verification items for individual applicant

7. Verification Tracking Groups 5 Verification Tracking Groups V1 – V5 Items to verify based on group 7

8. V1– Standard ‒ AGI ‒ U.S. Income Tax Paid ‒ Untaxed Portions of IRA Distributions ‒ Untaxed Portions of Pensions ‒ IRA Deductions and Payments 8 ‒ Tax Exempt Interest Income ‒ Education Credits ‒ # of Household Members ‒ # in College ‒ SNAP (Food Stamps) ‒ Child Support Paid Tax Filers

9. V1—Standard (cont.) Income Earned from Work # of Household Members # in College SNAP-Food Stamps Child Support Paid 9 Non-Tax Filers

10. V2—SNAP Supplemental Nutrition Assistance Program (SNAP-Food Stamps) 10

11. V3—Child Support Paid Child Support Paid by: the student and/or the student’s parent (dependent student) the student’s spouse (independent student) 11

12. V4—Custom HS Completion Status Identity/Statement of Educational Purpose SNAP Child Support Paid 12

13. V5—Aggregate HS Completion Status Identity/Statement of Educational Purpose AND All items indicated->Tax Filer (V1) All items indicated->Non-Tax Filer (V1) 13

14. 2013-14 Verification Documentation of HS completion status: HS diploma earned Copy of HS diploma; or Final HS transcript that shows the date of graduation Note: If a copy of an applicant’s HS diploma or final transcript is unavailable, the institution may accept alternative documentation 14

15. 2013-14 Verification Documentation of HS completion status: Recognized equivalent of a HS diploma GED Certificate; State certificate received by a student after the student has passed a State-authorized exam that the State recognizes as the equivalent of a HS diploma; Academic transcript of a student who has successfully completed at least a 2-year program acceptable for full credit toward a bachelor's degree; - -or-- 15

16. 2013-14 Verification Documentation of HS completion status: recognized equivalent of a HS diploma For a person seeking enrollment in an educational program that leads to at least an associate degree or its equivalent and has not completed HS but has excelled academically in HS, documentation from the HS that the student excelled academically in HS and documentation from the post-secondary institution that the student has met the formalized, written policies of the post-secondary institution for admitting such students 16

17. 2013-14 Verification Documentation of HS completion status: Homeschooled Transcript, or equivalent, signed by the parent or guardian, that lists the secondary school courses completed by the applicant and documents successful completion of a secondary school education; OR A secondary school completion credential for home school (other than a HS diploma or its recognized equivalent) provided for under State law 17

18. 2013-14 Verification Documentation of identity/statement of educational purpose Appear in person and present to an institutionally authorized individual* A valid govt.-issued photo ID, which must be copied AND A signed statement of educational purpose *option for notarized documents if unable to appear in person 18

19. 2013-14 Verification Documentation of identity/statement of educational purpose (cont.)— Must maintain, an annotated copy of the identification submitted by the applicant that includes: The date the documentation was received; AND The name of the institutionally-authorized person who obtained the documentation 19

20. Verification Documentation

21. 21 What Documents Do I Need? For taxable income, base year tax information For untaxed income and benefits, examples include: – Verification worksheet – Official agency documentation – Signed statement Other acceptable documents are listed in the FSA Handbook - Application and Verification Guide 21

22. IRS Data Retrieval and Verification An institution may consider information retrieved through the IRS data retrieval process as acceptable verification documentation if: The Secretary has identified those items as having come from the IRS and The items have not been changed IRS Request Flag = 02 22

23. IRS Data Retrieval Tool Filtering questions include logic to determine for the applicant if he is able to use the DRT and transfer data from IRS onto the FAFSA Message to recommend use of IRS Data Retrieval include link to IRS site OR Message explaining that the IRS Data Retrieval Tool will not work for applicant 23

24. 12-13 DRT Screening Questions  My tax filing status is Married Filing Separately*  My tax filing status is Head of Household*  I filed an amended tax return  I filed a Puerto Rican or foreign tax return  I filed my taxes within the last 8 weeks  None of the above *Only presented to married applicants/parents

25. IRS Data Retrieval Tool If link is presented, notified that transferring from FAFSA to IRS website Enter identifiers Information on tax return and corresponding FAFSA number display Choose to transfer tax data to FAFSA –or-- Choose NOT to transfer tax data to FAFSA

26. Updated IRS Request Flags

27. IRS Tax Return Transcript A tax transcript is required when: the IRS Data Retrieval Process was not used the IRS Data Retrieval Process was used, but data was subsequently changed the institution has reason to believe that the data transferred is inaccurate (no routine requests) a married independent applicant and spouse –or- the parents of a dependent student filed separate tax returns …but, wait, there’s more …

28. IRS Tax Return Transcript A tax transcript is also required when: an applicant or applicant’s parent had a change in marital status after the end of the tax year (December 31) the applicant, or parent, or spouse (as applicable) filed an amended tax return (along with a copy of the amended return)

29. IRS Tax Return Transcript Exceptions In limited circumstances, if an institution determines that obtaining an IRS Tax Transcript is not possible, the institution may accept a signed copy of the tax return Must document the reason for allowing this Examples include: Foreign or Puerto Rican tax return Identity theft (more guidance forthcoming)

30. Extension Filers Verification is complete if you have: Documentation of IRS extension and Appropriate W-2(s) or statement if self-employed MAY require an individual granted a tax filing extension to provide a copy of their completed and signed tax return when filed MUST verify AGI and taxes paid, if you receive a copy of the return MAY return all funds disbursed, if you do not receive copy 30

31. Changes to FAFSA Information Effective in 12-13, for subsidized programs, all changes resulting from verification must be submitted to CPS if change is - To any non-dollar item or - A single dollar item of $25 or more If required to submit one change, must submit all changes 31

32. Verification Resources

33. 2013-14 Verification Resources Federal Register notice published 7/12/12 Dear Colleague Letter GEN 12-11 Electronic Announcements 33

34. Verification Resources 6/18/10 NPRM (Pages 34825 – 34834) http://www.ifap.ed.gov/fregisters/FR061810ProgramInterityIs suesNPRM.html http://www.ifap.ed.gov/fregisters/FR061810ProgramInterityIs suesNPRM.html 10/29/10 Final Rule (Pages 66902 – 66913 and 66954 – 66958) http://www.ifap.ed.gov/fregisters/FR102910Final.html Federal Register Notice of Information To Be Verified for the 2012–13 Award Year http://www.ifap.ed.gov/fregisters/FR071311FAFSAInformatio n.html http://www.ifap.ed.gov/fregisters/FR071311FAFSAInformatio n.html 34

35. Verification Resources GEN-11-13 and GEN-11-03 http://www.ifap.ed.gov/dpcletters/GEN1113.html http://www.ifap.ed.gov/dpcletters/GEN1103.html http://www.ifap.ed.gov/dpcletters/GEN1113.html http://www.ifap.ed.gov/dpcletters/GEN1103.html Q&A on Program Integrity website - link from IFAP: http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/ verification.html http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/ verification.html Sample 2012-13 Verification Worksheets http://www.ifap.ed.gov/eannouncements/020312SampleVerifi cationWorksheets1213.html http://www.ifap.ed.gov/eannouncements/020312SampleVerifi cationWorksheets1213.html 35

36. Verification Q & A

37. Verification Resources FAFSA-IRS Tax Return Transcript Matrix http://www.ifap.ed.gov/eannouncements/031612FAFSA1213Verifica tionIRSTaxReturnMatrix.html http://www.ifap.ed.gov/eannouncements/031612FAFSA1213Verifica tionIRSTaxReturnMatrix.html 2012-13 Application and Verification Guide http://www.ifap.ed.gov/fsahandbook/attachments/1213AVG.pdf GEN-12-07—Acceptable Documentation for Income and Taxes http://www.ifap.ed.gov/dpcletters/attachments/GEN1207.pdf 37

38. IRA/Pension Distributions (Rollovers) The solution Applicant/parent or FAA may modify transferred to FAFSAA by DRT If DRT amount is modified to account for a rollover, institution must maintain documentation Written and signed statement from tax filer indicating amount of distribution excluded Signed and Dated Notation by tax filer on IRS Tax Return Transcript that includes the word “Rollover” beside the applicable item 38

39. Ordering IRS Tax Transcripts

40. Other Resources and Contact Information

41. Help with Title IV Questions For Schools & Other Professionals Research and Customer Care Center (RCCC) 1-800-433-7327 fsa.customer.support@ed.gov For Students Federal Student Aid Information Center (FSAIC) 1-800-4FED-AID 41

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43. Contact Information For follow-up questions on this session, contact me at: Annmarie Weisman, Training Officer annmarie.weisman@ed.gov 215-656-6456 To provide feedback to my supervisor, contact: Jo Ann Borel, Supervisor joann.borel@ed.gov 281-758-8122 43

44. Evaluation Your attention is appreciated at today’s session! To provide feedback to me and my supervisor, please complete an evaluation form. Thank you!!!

45. QUESTIONS?