Verification

2015-2016

Betty YeatmanMississippi State University

What is Verification?

The U.S. Department of Education defines verification as the process a school follows to check the accuracy of information reported by a student on the Free Application for Federal Student Aid.

Verification requirements are established by the Department of Education and are subject to change annually.

Who Do You Verify?

Applications selected for verification by the Central Processing System, unless one of the verification exclusions applies.

Applications selected for verification by the School.

Student Verification Exclusions

Student dies during the award yearNot a Title IV aid recipientEligible only for Unsubsidized aid programs

(TEACH, Unsub Stafford, PLUS)Verified by another school for same award

year – Need statement from other institution

If selected for verification after all disbursements were made and student is no longer enrolled at your school.

Parent and Spouse Verification Exclusions

Parent:Both are mentally incapacitatedResides outside of the U.S. and cannot be reached

by normal means of communicationCannot be reached because contact information is

unknown and cannot be obtained.Spouse: Is deceased. Is mentally incapacitatedResides outside of the U.S. and cannot be reached

by normal means of communicationCannot be reached because contact information is

unknown and cannot be obtained.

2015-2016 VerificationFederal Register notice published June 25,

2014http://ifap.ed.gov/fregisters/FR062514.htmlDear Colleague Letter (GEN-14-11)

published June 30, 2014http://ifap.ed.gov/dpcletters/attachments/GEN1411.pdfThe ISIR Guide, 2015-2016 published

October 2014http://ifap.ed.gov/isirguide/attachments/1516ISIRGuide.pdf

2015-2016 Verification

Retained the same items subject to verification in 2014-2015

Retained all the same Verification Tracking Groups V1, V3, V4, V5 & V6

Will not provide verification worksheets for 2015-2016, however will provide suggested text for verification items on IFAP as in the past◦Not required to use text except for the

“Statement of Educational Purpose” language

Additional Guidance

IRS Form W-2 - If required, replacement copy of IRS W-2 should be requested from the employer who issued the original W-2

V6 Group - Institutions should use reasonable judgment when evaluating the validity of the income information provided in Verification Tracking Group V6. Support may include: public assistance, veteran’s benefits, or other income not on the FAFSA, shared-living arrangements, instances of poverty or homelessness; or documentation of low-living costs.

Additional GuidanceTax Filers:All applicants placed in Verification

Tracking Group V6 must provide a copy of their IRS Form W-2 for each source of employment for tax year 2014

Nontax Filers:If you question a claim that a student or

parent did not file a 2014 IRS income tax return, the school must require a “Verification of Non-filing Letter” from the IRS. It must be dated on or after June 15, 2015.◦Note: This does not address whether or not the

tax filer was required to have filed a tax return.

Additional GuidanceDependency Status and Number of

Household Members - needs to be coordinated with the dependency questions on the FAFSA and any necessary corrections should be reported to the CPS.

FAFSA Parental Information for unmarried parents of a dependent student must include both of the student’s “legal” parents if the parents live together, regardless of gender of parents (Dear Colleague Letter GEN-13-12)

Additional Guidance

The Defense of Marriage Act – As noted in Dear Colleague Letter GEN-13-25, a student or parent is considered married if the student or parent was legally married in any domestic or foreign jurisdiction that recognizes the relationship as a valid marriage, regardless of gender.

Additional Guidance

High School Completion Status – Applicants in Groups V4 and V5 must provide documentation verifying their reported high school completion status.

Test transcripts for GED, HiSET, TASC,

or other State-authorized exam, are acceptable documentation only if:◦They are considered by the State to meet

requirements of high school equivalency, or◦The official test transcript includes language

that the final score is a passing score.

Verification Requirements

Information Required to be Verified

Verification Tracking Group

V1Standard

Group

V2Reserved for FSA Use Only

V3Child Support

Group

V4Custom Group

V5Aggregate

Group

V6Household Resources

Group

Household size

X

N/A

    X X

Number in college

X     X X

Child support paid*

X X X X X

Supplemental Nutrition Assistance Program*

X   X X X

High school completion

    X X  

Identity/educational purpose

    X X  

Income/tax data**

X     X X

Other untaxed income

        X*Information must be verified only if reported on the FAFSA.**Income tax data will only be required for tax filers; verification of income earned from work will only be required for non-tax filers.

IRS Data Retrieval ToolWhen using FAFSA on the Web, student and parents who indicate they filed federal income tax returns may be directed to the IRS Data Retrieval Tool to populate the FAFSA fields with tax data directly from the IRS.

The ISR Date Retrieval Tool will not be available if the:◦ The person did not indicate on the FAFSA that the tax return

has been completed◦ The marriage date is January 2015 or later◦ First three digits of the Social Security Number are 666◦ The tax return was amended◦ The person filed a Puerto Rican or foreign tax return◦ The person is married and filed the tax return either as head

of household or married but filing a separate return◦ Neither married parent entered a valid SSN◦ A non-married parent or both married parents entered all

zeroes for SSN

IRS Tax Transcripts

Requesting Tax TranscriptsThere are multiple ways tax filers can request a tax transcript, most of which do not involve payment of a fee to the IRS:

◦ Using Get Transcript online at www.irs.gov/transcript

◦ By phone at 1-800-909-9946◦ Using the IRS2Go Mobile App on a mobile

device◦ By mail using IRS From 4506T-EZ

General Documentation Requirements

Income Earned from Work for non-tax filers – Required for V1,V5,V6Signed statement:

◦ Indicating sources and amounts of income earned from work in 2014

◦ Certifying the applicant has not filed and is not required to file taxes for 2014

Copy of a W-2 Form for each source of employment income received in 2014

If the school believes information provided is inaccurate, the applicant must provide to the school a “Verification of Non-Filing” from the IRS.

If the applicant is unable to obtain the W-2, the school may accept a signed statement listing the source and amount of income earned from work, and the reason the W-2 Form is not available.

General Documentation Requirements

Household Size – Required for V1,V5,V6

◦ Signed statement from the applicant (and one parent, if the applicant is dependent) listing the name and age of each household member and the relationship to the applicant. Not required when: Dependent student lists 2, and the parent is single, divorced,

separated or widowed. Dependent student lists 3, and the parents are married or

unmarried and living together. Independent student lists 1, and the student is single, divorced,

separated or widowed. Independent student lists 2, and the student is married.

A dependent student's legal parents who live together, regardless of marital status or gender, are required to provide information on the FAFSA and for verification.

General Documentation Requirements

Number in College– Required for V1,V5,V6

Signed statement from the applicant (and one parent, if the applicant is dependent) listing the name and age of each household member attending a Title IV-eligible school at least half time during the 2015-2016 award year, and the name(s) of the applicable school(s).

Not required when the number in college is 1.

If the school believes information from the FAFSA or the signed statement is inaccurate, it must obtain a statement from each listed school unless the household member is not yet registered or will attend the applicant’s school.

General Documentation Requirements

Child Support Paid – Required for V1,V3,V4,V5,V6

Signed statement from the applicant or parent listing:◦ Name of the individual who paid the support◦ Name of the child support recipient◦ Name of the child/children for whom support was

paid◦ Amount of support paid during the calendar year

Not required if child support paid is not reported on the FAFSA. If the school believes information provided on the signed statement is inaccurate, it must obtain documentation such as a copy of a separation agreement/divorce decree showing the amount to be paid, a statement from the child support recipient showing the amount paid, or copies of canceled checks, money order receipts or electronic payment records.

General Documentation Requirements

SNAP – Required for V1,V4,V5,V6

Signed statement from the applicant (or parent, if the applicant is dependent) certifying that the applicant or another household member received SNAP-Food Stamps in calendar year 2013 and/or 2014.

Not required if receipt of SNAP-Food Stamp benefits is not reported on the FAFSA. If the school believes information provided on the signed statement is inaccurate, the applicant must provide the school with documentation from the applicable Food Stamp issuing agency.

General Documentation Requirements

High School Completion Status – Required for V4,V5

Documentation of either a: High School Diploma Recognized equivalent:

◦ GED or transcript◦ State certificate recognized as an equivalent to a

diploma.◦ Academic transcript showing successful completion of at

least a two-year program fully acceptable toward a bachelor’s degree.

◦ Documentation that the student excelled in high school, if the student did not complete high school and enrolls in at least an associate degree program.

Home school credential

General Documentation Requirements

Identity Statement of Educational Purpose – Required for V4,V5

An applicant must provide the following in person and the school must maintain a copy of the ID provided by the applicant, including the following information:Government-issued photo ID such as passport or DLSigned statement of educational purpose for the

2015-2016 award year – You must use the exact language given by the Dept of ED

A student unable to appear in person at your school must go to a notary public and sign the statement of education purpose. Then submit to the school the notarized statement along with a copy of the same ID confirmed by the notary.

General Documentation Requirements

Other Untaxed Income – Required for V6 Signed statement from the applicant and one

parent, if dependent, listing the sources of other untaxed income on the 2015-2016 FAFSA:◦ Payments to tax-deferred pension and savings plans◦ Child Support Received◦ Housing, food and other living allowances paid to member

of the military, clergy and others◦ Veterans’ non-education benefits◦ Other untaxed income◦ Money received or paid on the student’s behalf

Copy of a W-2 Form for each source of employment income received in 2014

If the school believes information provided is inaccurate, the applicant must provide to the school a “Verification of Non-Filing” from the IRS.If the applicant is unable to obtain the W-2, the school may accept a signed statement listing the source and amount of income earned from work, and the reason the W-2 Form is not available.

Special Tax Situations

Filing Extensions◦ IRS Form 4868◦W-2 Form or, if self-employed, a signed

statement with amount of AGI & Taxes PaidFilers of joint returns no longer

married◦W-2 Form(s)

Non-Tax Filers◦W-2 Form◦Signed statement with sources & amounts of

income earned from work, certifying that the person has not filed and is not required to file a tax return

Special Tax Situations

Filers of non-U.S. tax returns◦Copy of tax return signed by one of

the filers on the returnFilers of amended returns

◦Signed copy of IRS From 1040X◦Signed copy of the original tax

return that was filed or tax return transcript

Special Tax Situations

Victims of Identity Theft◦Victims must call the IRS’s Identity

Protection Specialized Unit (IPSU) at 800-908-4490.

◦IRS will mail her a TRDBV (Transcript DataBase View) to use for verification

Using a Tax Return◦When the DRT and return transcript

are not available

Completing the Process

If you find the FAFSA Information is accurate, you are free to proceed with processing financial aid for the student. If the information is incorrect of inconsistent, however, you are required to correct this data and submit the application to the CPS for reprocessing.

Common Documentation Errors

Failing to review tax documentation for students not selected for verification. Documentation must be reviewed for conflicting information, even if the student is not selected for verification.

Failing to obtain tax documents for both parents of a dependent student when both parents are on the FAFSA and file separate tax returns.

Failing to obtain tax document of the spouse of an independent student

Accepting income documentation from a non-custodial parent. You must determine which parent’s information should be on the FAFSA.

Questions ?