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FSS/PPS 03.26 - IRS Form 1098-T Preparation and Distribution

IRS Form 1098-T Preparation and Distribution

FSS/PPS No. 03.26 (07.01.01)
Issue No. 2
Effective Date: 8/31/2015
Next Review Date: 3/01/2020 (E5Y)
Sr. Reviewer: Director, Student Business Services

  1. PURPOSE

    1. To establish the responsibility and procedures for the preparation and distribution of IRS Form 1098-T.

    2. To ensure the policy and procedures conform to the Internal Revenue Code.

  2. POLICY

    1. IRS Section 1.65050S-1 requires universities to provide Form 1098-T to United States resident students who paid qualified tuition and fees during the calendar year.

    2. Student Business Services (SBS) is responsible for the production and distribution of Form 1098-T by January 31st of the following tax year.

    3. The University reports 1098-T information using the amount billed method for the tax year.

    4. The University and representatives will not provide individualized tax advice or guidance. Tax advice or guidance should be provided by the individual’s tax consultant, preparer, or counselor.

  3. RESPONSIBILITIES ASSOCIATED WITH THIS PPS

    1. Student Business Services responsibilities

      1. SBS has the responsibility to ensure the 1098-T is prepared and distributed in accordance with the regulations.

      2. SBS will provide the office of Payroll and Tax Compliance with a list of newly added and updated detail codes for review no later than December 1st of each year.

      3. The actual 1098-T must be electronically available no later than January 31.

      4. SBS has primary responsibility for review and audit of the 1098-T file during testing to ensure compliance with the list of detail codes.

      5. Communicate with students reminding them to update addresses if they are leaving campus after fall, provide missing SSN’s, and also to provide information on access to the website and when the forms will be available.

      6. Students will be communicated of when and where they may access the 1098-T form via their Texas State email address, for current students, or their personal email address, if provided, for students not enrolled. Non-enrolled students, without an alternate email address, will be sent written communications.

      7. Provide generalized 1098-T guidance and answer questions requiring detailed information as it relates to general billing and fee payment issues.

      8. Responsible for shredding all returned 1098-T forms.

      9. SBS will review and update the electronic authorization form annually.

    2. Payroll and Tax Compliance responsibilities

      1. Payroll and Tax Compliance will review the list for compliance with the IRS tax codes as they may pertain to the 1098-T reporting and respond to SBS with recommendations by December 15th of each year.

      2. Similarly, Payroll and Tax Compliance will coordinate with Financial Aid any known changes pertaining to gift eligibility for reporting purposes.

      3. Collaborate with SBS in the review of data for 1098-T reporting through January 15th.

      4. Upon request the Director will provide generalized 1098-T guidance for tax questions requiring detailed answers as it relates to IRS and University policy.

    3. Financial Aid and Scholarships responsibilities

      1. The Financial Aid and Scholarships office has the responsibility to do an initial review of data to determine gift aid eligibility no later than December 1. This information comes directly from the FA fund dataset and links to the accounts receivable detail codes in Banner.

      2. Assist as needed in the review and testing of the 1098-T data through January 15th.

      3. Provide generalized 1098-T guidance and answer questions requiring detailed information specifically related to gift aid and FA disbursements.

  4. REVIEWERS OF THIS PPS

    1. Reviewers of this PPS include the following:

      Position Date
      Director, Student Business Services March 1 E5Y
      Director, Payroll and Tax Compliance March 1 E5Y
      Director, Financial Aid and Scholarships March 1 E5Y
  5. CERTIFICATION STATEMENT

    This PPS has been approved by the following individuals in their official capacities and represents Texas State Finance and Support Services policy and procedure from the date of this document until superseded.

    Director, Student Business Services; senior reviewer of this PPS

    Treasurer

    Vice President for Finance and Support Services