verification 2015-16 keep the conversation rolling… jo holland pulaski technical college aasfaa...
TRANSCRIPT
Verification 2015-16Keep the Conversation Rolling…
Jo HollandPulaski Technical College
AASFAA Spring Conference
• Why Verify?• Verification Tracking Groups (Process and
Documentation)• Resources• Discussion
Why Do We Verify?
We verify to ensure that the application data submitted is accurate before eligibility is determined and Title IV funds are disbursed.
Verification 2015-16
Summary of Tracking Groups• V1 Standard Verification Group• V3 Child Support Paid Verification Group• V4 Custom Verification Group• V5 Aggregate Verification Group• V6 Household Resources Group
V1 Standard Group (Tax Filers)
Items To Be Reviewed• AGI• U.S. Income Tax Paid• Untaxed Portions of IRA
Distributions• Untaxed Portions of Pensions• IRA Deductions & Payments• Tax Exempt Interest Income• Education Credits
Documentation• IRS DRT• Tax Return Transcripts• Alternate documentation where
allowed (amended returns, foreign returns, etc.)AVG 79-832015-2016 Income Information for Individuals with Unusual Circumstances (Filing Extension Grant by the IRS, Amended IRS Income Tax Return, Identity Theft, etc.) AVG 81-83.
V1 Standard Group (Non-Tax Filers)
Item To Be Reviewed
• Income earned from work AVG 81
Documentation (income earned from work)
• Must receive a W-2 form for each source of employment income.
• And,• Must receive a signed statement
certifyinga. Individual has not filed and not required to file tax return for 2014;b. Sources of income earned from work & amounts from each source for tax year 2014 not on a W-2.
V1 Non-Tax Filers (Cont’d)
If you question that the tax filer is not required to file, you must require the applicant to submit a “Verification of Non-Filing Letter”.
• Use “Get Transcript Online”www.irs.gov/individuals/get-transcriptor,
• Form 4506-T and checking box 7
Note: “Verification of Non-Filing Letter” for 2014 tax year may not be available until after June 15, 2015.
V1 All Applicants Remaining Items
Number in household AVG 84
Number in college AVG 85
Food stamps (SNAP) Supplemental Nutrition Assistance Program AVG 85
Child Support Paid (CSP) AVG 85-86
V3 Child Support Paid Verification GroupStudents must verify child support paid by them or their spouse, their parents, or both.
• Child Support Paid (If Reported on ISIR)– Documentation
• Statement signed by applicant/parent certifying– Amount of CSP– Name of person who paid the child support– Name of person to whom child support was paid– Names of children for whom child support was paid– Age of children for whom child support was paid AVG 85-86
• If you have reason to believe the information is inaccurate, the applicant must provide the institution with supporting documentation (divorce decrees, checks, records of electronic child support payments made, etc.)
V4 Custom Verification GroupStudents must verify high school completion status & identity/statement of educational purpose. in addition to receipt of SNAP benefits and payment of child support.
High School Completion AVG 86-87
Most Common Documents Submitted:
Copy of high school diploma Copy of a final official high school transcript with date diploma was awarded GED certificate or transcript that indicates exam passed Other documents listed in AVG 86
In cases where documentation is unavailable, see AVG 87, you may accept alternative documentation to verify high school completion status.
V4 Custom (cont’d)
Identity/Statement of Educational PurposeYou must use the exact language given
Documentation (statement completed in person) Must be completed in presence of authorized individual of the institution Student must provide government-issued photo id Original statement & copy of photo id must be maintained the required Title
IV record retention period. Refer to IFAP
Documentation (notary signed) Must submit statement, certification from notary and a copy of the same id
presented to notary. Cannot be faxed or emailed. Original statement & copy of photo id must be maintained the required Title
IV record retention period.
V4 and V5 Reporting
Schools are required to report through FAA Access Online the outcomes of verifying high school completion status and identity/statement of educational purpose for applications with tracking flags V4 and V5.
General Instructions for this process are explained on pages AVG 77-78.
Remember, this reporting is required for verifications selected by CPS only, not your school!
V5 – Aggregate Verification• Students must verify high school completion status &
identity/statement of educational purpose in addition to the Standard Verification Group (V1).
• High School Completion Status AVG 86-87• Identity/Statement of Educational Purpose AVG 87
and,All items for Tax Filer (V1 Standard Group) AVG 76-77All items for Non-Tax Filer (V1 Standard Group) AVG 77
V6 Household Resources Group
Students must verify items in the Standard verification Group as well as certain other untaxed income on FAFSA.
• (V1) All Items for Tax Filer• (V1) all items for Non-Tax Filer• Other untaxed income from 15-16 FAFSA-
– Payments to tax-deferred pension & retirement savings plans (Q 45a & 94a)
– Child support received (Q 45c & 94c)– Housing, food & other living allowance paid to members of military, clergy
& others (Q 45g & 94g)– Veterans non-educational benefits (Q 45h and 94h)– Other untaxed income (Q 45i & 94i)– Money received or paid on the applicant’s behalf (Q 45j)
V6 Household Resources (cont’d)
Documentation for Other Untaxed Income-1) Signed statement including sources & amounts of income
for 2014 tax year; and2) Copy of W-2’s for sources of employment income for 2014
tax year where applicable.
AVG-84• You must get a copy of the W-2(s) for all persons in the Household Resources Group (V6),
including tax filers who used the IRS DRT or acquired a tax transcript. Get W-2s for those in the household whose financial information appears on the FAFSA. Tax filers could have other untaxed income that was not transferred via the DRT or that did not appear on the tax transcript, and W-2s are used to verify whether there was such income that should have been reported on the FAFSA and if it was reported correctly.
V6 Household Resources (cont’d)
As part of the review of information & documentation provided, if a school determines that the amounts provided do not appear to provide sufficient support for the family members included on the FAFSA, the applicant (& parent/spouse) must-
o Provide additional signed documentation of resources used to support family (other than items required to be reported on the FAFSA or other verification worksheets) Examples: Low-Income Form, Income-to-Expenses Comparison Form, etc.Reasonable judgment should be used when evaluating submitted documentation. Do you have a an income guideline established for staff to follow? Reasonable will differ from school to school.
Additional Topics
Amended Tax Returns AVG 82Heroes Act Modifications Federal Register Sept. 27,2012 AVG 77Identity Theft AVG 82Other Untaxed Income V6 AVG 84Professional Judgment AVG 82Reporting Results V4 & V5 Electronic Announcements
11/13/13 & 11/6/14 AVG 77 78Separating Income AVG 83Special Tax Situations AVG 81Updating Information AVG 87-88Verification Exclusions AVG 78-79Verification After Disasters AVG 77
References and Resources
• IFAP– Ifap.ed.gov
• Federal Register Notice – June 25, 2014– Ifap.ed.gov
• Chapter 4 of Student Aid Handbook 2015-16– Ifap.ed.gov
• IRS Publications Regarding Federal Income Tax – Irs.gov
