On Central Processing System (CPS) Transaction 01, a student successfully used the IRS Data Retrieval Tool (DRT) to transfer tax information to the Free Application for Federal Student Aid (FAFSA). The student then made a correction on Transaction 02 to add the correct number of exemptions. The IRS Request Flag changed from a “02” to a “04” since the user “changed” something after using the DRT and the student has now been selected for verification. Is your office required to request an IRS Tax Return Transcript if this was the only item that the student changed? Read on to see if you got the answer right!
Yes, since the student is selected for verification and the IRS DRT code changed from “02,” which indicates IRS data was transferred from the IRS and was not changed by the user prior to submission of an application or correction, to “04,” which indicates IRS data was transferred from the IRS and then changed by the user on a subsequent transaction. As a result, an IRS Tax Return Transcript is required to complete verification.
Publication Date: 6/24/2015