RMASFAA Training Series 2018 SAR Comment Codes

RMASFAA Training Series 2018 SAR Comment Codes
Presented by: Candace Graus, Colorado Mesa University Jim Ciha, Colorado Mesa University

Let the Games Begin! Learning is Fun - but games make it better 
We will have 1 puzzle hidden within each of our trainings/presentations/blogs this year (for a total of 8) This training will contain the 3rd puzzle. Each RMASFAA State will be highlighted leading up to the final puzzle (still time to enter Puzzle 2!) Puzzle #2 is in our first REST Blog Post – “Getting a CLUE: A How-Done-It Mystery (Solved!) for the Financial Aid Noob” Discover the answer to the puzzle within this presentation and submit your answer via to with the subject line “RMASFAA Puzzle #3” for a chance to be entered into a small prize drawing This PowerPoint and recorded session will be made available to access any time after this initial presentation so any member can participate – even if they are not tuned in today Entry of your correct answer can be submitted up to one month after this presentation –drawing will be done on Thursday, May 3 If you don’t win the single session prize, don’t fret!! You have other chances throughout the year to tune in and win and then… Collect all 8 correct puzzle answers to solve the big final puzzle at the end of our training series to enter for a chance to not only win a prize, but also be crowned “RMASFAA Training Committee Grand Champion Game Master” – all bragging rights included!

Questions about the Rules?

Today’s Goals: Review: Common SAR comment codes that schools encounter
The new 400 and 401 comment codes The IRS Display Flag 06 and 07

Selective Service (Code 030, 035, 057)
The applicant is not in the Selective Service Database Student Action: Registering with Selective Service, or Correcting the FAFSA to include their gender, or Provide documentation that he qualifies for an exemption or waiver School Action: Assist the student in fulfilling the requirement Determine if student would be exempt or qualify for a waiver

Citizenship (Code 046, 105, 109, 141, 142, 144) The applicant is not in the Department of Homeland Security Database Student Action: Provide documentation as necessary School Action: Documentation and procedures vary with the code May need to verify the Alien Registration Number, or May begin the G-845 process

New G-845 Process Beginning May 1, 2018
No paper forms accepted on or after this date Send paper forms no later than April 24, 2018 to avoid rejected forms Hold all forms received by the school after this date until SAVE system operational Separate SAVE system log-in credentials Ability to submit information and upload documents FSA Handbook Volume 1, Chapter 2, p. 1-32

Social Security Administration (Code 063, 064, 146)
Student or Parent cannot be located in the Social Security Administration Database Checks student and parent’s name, DOB, and SSN are a match May need to have student or parent provide a copy of a birth certificate or social security card

Veteran’s Administration (Code 162, 173, 180)
Verify against Department of Veteran’s Affairs Database An individual who has engaged in Active Duty Student may need to provide DD214 or release orders

National Student Loan Data System (Code 115, 124, 132, 133, 134, 135, 136, 254, 255, 256, 260, 346, 347, 359, 360, 392, 393) Verifies student’s eligibility for Title IV funds Verifies default and overpayment status Ensures annual and aggregate award limits are not exceeded Unusual Enrollment History (UEH) Student Actions Student may need to supply statements regarding discharge of debt or documentation such as transcripts School Actions Review aggregate limits or review status on NSLDS

Questions?

AGI Comment Codes 400 (for parents) and 401 (for students)
These are triggered when an applicant completes the FAFSA online and edits are performed prior to submission At least one edit was triggered, but could not be displayed to the applicant or parent and therefore, could not be resolved

Beginning 2018 – 2019, the IRS data that is transferred using the DRT is not shown to the applicant For those using the IRS DRT: Wages must be manually input for those who file a joint return Single applicants and single parents will continue to have their income earned from work transferred from the IRS into their FAFSA

All ISIRs received with this code must be evaluated 3 scenarios require follow-up If it is determined that no conflict exists, then document your findings and take no further action for comment codes 400 and 401

Scenario 1: Student is a tax filer (FAFSA Question 32) and the AGI retrieved from the IRS is zero, but the total income earned from work (FAFSA Question 39 and 40) is greater than zero

Scenario 1 Example: John is independent, filed his 2016 tax return jointly with his spouse Student Wages: $12,000 Spouse Wages: $15,000 AGI as reported by the DRT: $0 Resolution is required.

Scenario 2: The total of the Additional Financial Information fields reported on the FAFSA (Questions 44a – f) is greater than the AGI transferred from the IRS

Scenario 2 Example: Amy reported the following on the FAFSA for question 44: -Grant and Scholarship Aid: $6,000 -Child Support Paid: $8,000 -Her AGI was reported by the DRT as $12,000 Resolution is required.

Scenario 3: Any item from the FAFSA list of Untaxed Income (FAFSA Questions 45a – j) is equal to or exceeds the AGI transferred from the IRS

Scenario 3 Example: Wyllie submitted a FAFSA with his parent reporting the following Untaxed Income: -Child Support Received: $12,000 -AGI: $8,000 Resolution is required.

Further Example 1: Abbey submitted her FAFSA with the following information successfully linking both her tax information and her parents: Student Wages: $11,311 Student AGI: $11,311 Parent 1 Wages: $61,441 Parent 2 Wages: $61,441 Parent AGI: $64,852 Resolution is not required but is recommended.

Further Example 2: Jeremy submitted his FAFSA with the following information successfully linking both his tax information and his parent: Student Wages: $70,000 Student AGI: $70,000 Parent 1 Wages: $70,000 Parent AGI: $70,000 Resolution not required but is recommended.

How can a school determine the trigger of the 400 or 401 code? (From NASFAA per guidance from Department of Education) 1. Log into CPS Online 2. Enter student’s identifiers 3. Indicate that you are making a correction 4. Click “Calculate EFC” button at the bottom 5. CPS will run through all the edits and the specific trigger for 400/401 codes will display 6. Make note of the trigger 7. DO NOT SAVE/SUBMIT THE CORRECTION and exit

Questions?

IRS Request, Display, and Data Field Flags

IRS Request Flag Value of 06
The applicant or parent was eligible to use the IRS DRT, data was transferred from the IRS, but the applicant made a correction later that made them ineligible

Example: -The applicant initially indicated that she was married as of 02/2007 and filed jointly, linking that return -Later, the applicant changed her marital status date to 02/2017. *This change made them ineligible School Action: -Must contact the applicant to determine if the income tax return information transferred to the FAFSA was correct. -Request appropriate documentation as necessary

IRS Request Flag H Has been discontinued
Replaced by IRS Request Flag Value 06

This applies to only those applicants who successfully use the IRS DRT Indicates that the applicant or parent filed an amended tax return In this instance, the original income and tax information that was reported on the original filed tax return was transferred by the DRT This does NOT include information from the amended tax return

School Action: -Determine whether the applicant or the parent filed the amended return -Documents to Request: -Signed copy of the IRS Form 1040X filed with the IRS or a Tax Account Transcript -One of the following: -An IRS Tax Return Transcript (containing information from only the original tax return) -Unchanged IRS DRT data on the ISIR -An IRS Record of Account Transcript (which shows both the original tax return information and any changes that were made) -Special Case: An IRA/Pension Rollover

School Action: The financial aid administrator must make any necessary changes to any of the data items, regardless of whether those items are required to be verified

How do we complete verification or resolve the 07 when no 1040X was filed, but the IRS corrected the tax return? Documents needed: Any letter or notice from the IRS indicating the changes the IRS made to the tax return A Tax Account Transcript or an IRS Record of Account Transcript

Quick Recap No more paper G-845 forms, go to SAVE system to submit this information after May 1, 2018 Review Comment Codes 400/401 for the 3 scenarios to know how to proceed IRS Request Flag 07 Determine whether the applicant/parent made the change or the IRS Request additional documentation

Upcoming Training & Puzzle Opportunities
May -“What’s My Line?” Pre-recorded interview with Joshua North (Recent Program Review Survivor) -2nd REST Blog Post – “UNO is Not the Answer to Success!” By Ashlee Dutton June -3rd REST Blog Post – “Be STRATEGO and Beat Burnout by Thinking Effectively About Processes” by Linda Butcher and Janet Dodson

Final Questions? Remember to email: Ashlee.Dutton@ppcc.edu
with your puzzle answers by May 3, 2018 if you would like to be entered in the drawing for the first prize 

REFERENCES SAR Comment Codes (NASFAA Annual State & Regional Training Materials) NASFAA News: 2-26: Transition from Paper G-845 Form to an Electronic Confirmation Process for Eligible Noncitizen Status Federal Student Aid Announcement (IFAP): Changes to the IRS Data Retrieval Tool Process for the FAFSA Form (August 7, 2017) NASFAA AskRegs: How Should a School Resolve Comment Codes 400 and 401 NASFAA AskRegs: How Do We Resolve IRS Request Flag 07 for Amended Tax Returns? NASFAA AskRegs: How Do We Complete Verification or Resolve the 07 When 1040X Was Filed But the IRS Corrected the Tax Return?

RMASFAA Training Series 2018 SAR Comment Codes

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