The Department of Education confirmed recently that it has changed its policy regarding tax returns that contain a tax preparer's information, but do not contain a taxpayer's signature. A tax return that is printed or typed with the tax preparer's name, plus the SSN or EIN (Employer Identification Number) is acceptable; previously, it was not acceptable.
Tax returns are accepted as documentation for verification purposes if the return meets any one of the following criteria:
- Signed by the taxpayer;
- Signed by one taxpayer, if a joint return;
- Signed by the tax preparer, and includes the SSN or EIN;
- Stamped with the tax preparer's name, plus the SSN or EIN; or
- Printed or typed with the tax preparer's name, plus the SSN or EIN
Although this change in guidance was not incorporated into the Federal Student Aid Handbook until the 2002-03 edition, it is NASFAA's understanding that the change in policy was effective as early as September 1999.
Verification was a NASFAA Spring Training topic in 2002. Page 17 of the Participant's Handout has been updated with this new information. The updated page can also be found on the Training Updates and errata page.
By Karen McCarthy
NASFAA Assistant Director for Training and Technical Assistance
Posted February 7, 2003 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2003.
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