Consumer Information: FSA & IRS Expand Collaboration!

1. Session 35 Consumer Information: FSA & IRS Expand Collaboration! Larry Coles (ED), Gregory Ford (IRS), and Tracey Martin (IRS)| Dec. 2013 U.S. Department of Education & Internal Revenue Service 2013 FSA Training Conference for Financial Aid Professionals

2. Introductions and Topics Covered Larry Coles, Department of Education Gregory Ford, Internal Revenue Service Share information on the innovative partnerships between the IRS and Department of Education and how this impacts Financial Aid Administrators and students and parents Tax Credits and Deductions (Session 34) Free Tax Return Preparation Options Data Retrieval Tool and Tax Transcripts Tracey Martin, Internal Revenue Service Share information on the technological partnerships between the IRS and Department of Education IRS Data Retrieval Tool (DRT) IRS Transcripts 2014 Transcript Service Approach

3. Who are we? What do we do? Department of Education Federal Student Aid Customer Experience (CE) Policy Liaison & Implementation (PLI) Internal Revenue Service Business Modernization Office Communication & Liaison Stakeholder Partnership, Education & Communication (SPEC)

4. Federal Student Aid (FSA) Educate Students and Parents about the Financial Aid Process Process FAFSA Provide Title IV Funding to Schools Enforce compliance of Title IV Rules and Regulations Service Loans and Secure Payments for Defaults Operate Information Technology Systems and Tools to Manage the Federal Student Aid Process

5. FSA Customer Experience (CE) Focus/Charge of CE Identify, Measure, Report Customer Satisfaction with FSA Services and Presentations Understand Customer Perceptions Identify Ways to Improve Be the “Voice of the Customer” Ensure that Needs and Expectations Are Met

6. Policy Liaison and Implementation Focus/Charge of Policy Liaison • The Policy Liaison and Implementation Staff serve as the principal advisors to the Chief Operating Officer (COO) on all FSA program policy issues and facilitates, FSA’s involvement in the development, implementation and dissemination of FSA program policy

7. IRS – SPEC SPEC’s charged as the Outreach & Education Function of the IRS. Mission: Help taxpayers satisfy their tax responsibilities Build and maintain partnerships with key stakeholders Create and share value by informing, educating, and communicating with our shared customers

8. Communication and Liaison • The IRS and the Department of Education are working together to improve our strategy for reaching parents and students to inform them about the benefits and filing requirements for education credits and tuition deductions • A work group was formed with representatives from the IRS, Department of Education, the National Association of College and University Business Officers, and the National Association for College Admission Counseling to enhance our communication and outreach strategy

9. Why join forces? The FSA & SPEC partnership focuses on expanding current options and seeking new avenues to provide individuals in communities with information, assistance, and access to relevant IRS and Federal Student Aid services by: Providing needed services to shared underserved communities Educating students and families on the process of obtaining financial aid Increasing community involvement to provide free tax services and FAFSA assistance Expanding and sharing external partnerships to “get the word out!” Sharing information about tax credits and deductions with ED’s external partners

10. Results and Opportunities Results: In February 2013, over 5.3 million emails were sent to FAFSA filers informing them of IRS tax return preparation services Opportunities: Educate IRS VITA partners about the FAFSA application and IRS Data Retrieval Tool Streamline the financial aid application process through cross agency collaboration Develop new products and services to support joint efforts Expand IRS VITA sites and offer joint services

11. IRS Education Credits & Deductions Tax credits and deductions can help parents and students with their higher education expenses A tax credit reduces the amount of income tax someone may have to pay on a dollar-for-dollar basis for qualified education expenses The American Opportunity Tax Credit The Lifetime Learning Credit A deduction reduces the amount of income that is subject to tax, which generally reduces the amount of tax someone may have to pay The tuition and fees deduction

12. IRS Volunteer Programs (VITA) Volunteer Income Tax Assistance (VITA) Self Preparation Program Fusion Stand Alone Remote Virtual VITA/TCE

13. Free Filing Options • Free File: http://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free • My Free Taxes: http://www.myfreetaxes.com • VITA Locator: http://www.irs.gov/Individuals/Find-a-Location-for-Free-Tax-Prep

14. What’s in it for you and your students? Online Federal Tax Return completion Financial Aid Administrators/Staff can learn and share a valuable life skill (tax preparation) Students/parents prepare their own tax returns Volunteer opportunities for you and your students to give back to the local community Free tax assistance on college campuses and in the community IRS free educational websites: Link-N-Learn and Understanding Taxes

15. What can we do to help you? Promote FSA and IRS free tax services to targeted audience through social media messaging Provide partner toll free support for tax return preparation Provide free tax preparation software Provide free Interactive Tax Law Assistance on IRS.gov

16. Partnering to Streamline the Application Process Developing and expanding services to support joint FSA and IRS efforts IRS Data in an instant IRS Data Retrieval Tool (DRT) New IRS Transcript Service

17. IRS Data Retrieval Tool • Embedded link within FAFSA on the Web • Applicants must successfully authenticate using information from the filed tax return • Tax return data is available only after the return has posted to the IRS system • Retrieves specific tax return data from an originally filed tax return and displays data on applicants’ browser • Upon request, transfers the displayed data directly in response to specific questions on the FAFSA • IRS Transcript usually not required if data is successfully transferred and not modified by applicant • 2014 changes include Language toggle link, display of filing status and “per computer” values 17

18. IRS Transcripts • Tax Return transcripts - Anyone who filed a tax return, including first time filers • Tax Account transcripts • Anyone who filed a tax return/amended return, including first time filers • Record of Account • Anyone who filed a tax return/amended tax return, including first time filers • Verification of Non-filing • Non-filer; letter not a transcript • Information Returns Transcripts (W-2, 1099, 1098, 5498) • Anyone who has income that was reported to the IRS • Tax Return Database View (TRDBV) • Taxpayer who filed an original tax return and can not get a normal transcript through other methods because of duplicate tax return posting 18

19. IRS Transcripts • Basic information from tax return • Line by line presentation of tax return 19

20. IRS Transcripts: Availability • Electronically filed Tax Returns • $0 balance/refund returns: Generally available 2-3 weeks after the return has been accepted by IRS • Balance due/partial pay returns: Generally available by end of June or 3-4 weeks after the IRS receives the full/final payment • Paper Tax Returns • $0 balance/refund returns: Generally available 8-11 weeks after the IRS receives the return • Balance due/partial pay returns: Generally available by end of July • Amended Returns • Must be filed as a paper return • Generally available 12 weeks after the IRS receives the amended return • ID Theft Cases • Must be filed as a paper return • Generally available 8-11 weeks after the IRS receives the duplicate return 20

21. IRS Transcripts – Get Transcript • Get Transcript is a new IRS online service that will provide an electronic PDF version of official IRS Transcripts, launching early in the filing season 2014 • Key features: • For individual filers • Delivers all available Transcript types and/or Letters of Non-Filing • Accessible after taxpayers authenticate • Provides immediate display of transcript via PDF file; users can view, print, and save the file • Get Transcript is IRS’s preferred Transcript delivery channel • www.irs.gov/transcript 21

22. Get Transcript • Step 1 (Optional): Choose reason for requesting transcript. Receive suggestion • Step 2: Access available Transcripts and/or Letters of Non-Filing, organized by type 22

23. Other IRS Transcript Options • Transcript Toll free telephone line • Self service; 5-10 calendar day delivery to the address on file • 1-800-908-9946 • IRS2Go • Self service; mobile app; 5-10 calendar day delivery to the address on file • Available for Android and iOS (Apple) mobile devices • Order a Transcript • Self service; web app; 5-10 calendar day delivery to the address on file • http://www.irs.gov/Individuals/Order-a-Transcript • Form 4506-T • Manual process; up to 10 business days to process request and send transcript to the specified address • Third party address identified on Line 5 must be very specific 23

24. 2014 Service Approach • Individuals will be directed to the Get Transcript application for transcript requests • IRS will provide transcripts via live assistance only in rare circumstances • This new automated, self service tool will give taxpayers immediate access to their tax records. There is no phone call or visit required • IRS employees can focus on more complex taxpayer account issues that require person to person service • Existing mobile, web, and phone applications will also be available as well as Form 4506-T 24

25. Additional Information Contact: gregory.ford@irs.gov Eileen.K.Maloney@irs.gov Larry.Coles@ed.gov E-mail the IRS at partner@irs.gov Visit www.irs.gov. or www.ed.gov.

26. QUESTIONS?