Three weeks ago, AACC contacted you concerning notices (972-GC) that many institutions have received from the Internal Revenue Service assessing penalties for missing or mismatched taxpayer identification numbers on the 1098-T forms that institutions are required to provide for each student who pays tuition. Some of the penalties have been of eye-popping amounts. While most, if not all, institutions have been able to successfully appeal to the IRS to avoid paying the penalties, this situation is obviously of the highest concern.
AACC is working closely on this situation with the National Association of College and Universities Business Officers (NACUBO). Last week, NACUBO provided further advice to institutions on successfully avoiding assessments from the IRS, and generally staying in compliance with the relevant regulations. NACUBO has graciously permitted AACC to forward their recent communication to community college CEOs and other campus officials. This information, which includes a detailed background memorandum prepared by outside counsel, should go a long way in providing necessary assistance to institutions. This comprehensive report provides background information, advice on drafting a waiver request, best practices for collecting Social Security numbers from students, and a sample response letter to the IRS.
We hope that you find this information useful. We are also committed to working with the IRS to ensure that continued implementation of these requirements meets the best interests of students, institutions, and taxpayers.
For more information, contact David Baime, senior vice president of government relations and policy analysis.