The Information Reporting Program Advisory Committee (IRPAC) of the Internal Revenue Service (IRS) has released their 2009 recommendations on a wide range of tax administration issues. The primary purpose of the IRPAC is to provide a public forum for the IRS and members of the information reporting community in the private sector to discuss relevant information reporting issues.

Based on its findings and discussions, IRPAC made more than 50 recommendations on a broad array of issues and concerns Internal Revenue Service-wide. One set of recommendations in particular affects students and institutions of higher education:

Electronic Furnishing of Form 1098-T, Tuition Statement

IRPAC recommends that Form 1098-T would be most effectively and securely delivered electronically based on students’ negative consent; that is, it would be the default delivery method unless a student specifically opts out.

IRPAC recommends that the IRS publish more written guidance to students on what amounts to include on Form 1040 from the Form 1098-T. Another recommendation is to include a sentence on line 2 under the Instructions to Students that indicates this amount may not be the correct amount to report on Form 8863, Education Credits (Hope and Lifetime Learning Credits) or Form 8917, Tuition and Fees Deduction.

The IRS has not announced whether or when it may implement the recommendations.

Posted 10/30/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.