Higher Education Tax Benefit Compliance Improvement Act

Summary: Higher Education Tax Benefit Compliance Improvement Act This bill amends the Internal Revenue Code to: (1) exempt an institution of higher education from tax penalties for failure to provide the tax identification number (TIN) of a person who claims a tax credit for tuition and related expenses if such institution certifies that it has complied with standards for obtaining the TIN, and (2) disallow the American Opportunity tax credit and the tax deduction for tuition and related expenses unless the taxpayer receives a payee statement containing the TIN of the individual claiming the credit or the deduction. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Higher Education Tax Benefit 
Compliance Improvement Act''.

SEC. 2. WAIVER OF PENALTIES FOR CERTAIN FAILURES RELATING TO 
              INFORMATION RETURNS FOR HIGHER EDUCATION TUITION AND 
              RELATED EXPENSES.

    (a) In General.--Section 6724 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(f) Special Rules for Returns Related to Higher Education Tuition 
and Related Expenses.--Section 6721 shall not apply to any failure by 
an eligible educational institution (as defined in section 25A) to 
provide the TIN of an individual described in section 6050S(b)(2)(A) on 
any information return described in subsection (d)(1)(B)(xii) if the 
person required to file the return certifies under penalty of perjury 
that such person has complied with standards promulgated by the 
Secretary for obtaining the individual's TIN, unless it is shown that 
such certification is materially untrue.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to returns filed after the date of the enactment of this Act.

SEC. 3. PAYEE STATEMENT REQUIRED TO CLAIM CERTAIN EDUCATION TAX 
              BENEFITS.

    (a) American Opportunity Credit, Hope Scholarship Credit, and 
Lifetime Learning Credit.--
            (1) In general.--Subsection (g) of section 25A of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(8) Payee statement requirement.--No credit shall be 
        allowed under this section for any qualified tuition and 
        related expenses paid by the taxpayer unless--
                    ``(A) the taxpayer has received a statement 
                provided under section 6050S(d) which contains the TIN 
                of the individual for whom a payment of qualified 
                tuition and related expenses was made, or
                    ``(B) in any case in which--
                            ``(i) the qualified tuition and related 
                        expenses are for a course for which academic 
                        credit is not offered by the eligible 
                        educational institution, or
                            ``(ii) the eligible educational institution 
                        does not provide the taxpayer with a statement 
                        described in subparagraph (A) with respect to 
                        such qualified tuition and related expenses,
                the taxpayer maintains a record, in such form and 
                manner as prescribed by the Secretary, showing the date 
                and amount of the expenses.''.
            (2) Conforming amendment.--Paragraph (3) of section 25A(g) 
        of such Code is amended by adding at the end the following 
        flush sentence:
        ``For purposes of paragraph (8), a statement described in 
        paragraph (8)(A) which is received by such individual shall be 
        treated as received by such other taxpayer.''.
    (b) Deduction for Qualified Tuition and Related Expenses.--
            (1) In general.--Subsection (d) of section 222 of the 
        Internal Revenue Code of 1986 is amended by redesignating 
        paragraph (6) as paragraph (7) and by inserting after paragraph 
        (5) the following new paragraph:
            ``(6) Payee statement requirement.--No deduction shall be 
        allowed under this section for any qualified tuition and 
        related expenses paid by the taxpayer unless--
                    ``(A) the taxpayer has received a statement 
                provided under section 6050S(d) which contains the TIN 
                of the individual to whom a payment of qualified 
                tuition and related expenses was made, or
                    ``(B) in any case in which--
                            ``(i) the qualified tuition and related 
                        expenses are for a course for which academic 
                        credit is not offered by the eligible 
                        educational institution, or
                            ``(ii) the eligible educational institution 
                        does not provide the taxpayer with a statement 
                        described in subparagraph (A) with respect to 
                        such qualified tuition and related expenses,
                the taxpayer maintains a record, in such form and 
                manner as prescribed by the Secretary, showing the date 
                and amount of the expenses.''.
            (2) Conforming amendment.--Paragraph (3) of section 222(c) 
        of such Code is amended by adding at the end the following 
        sentence: ``For purposes of paragraph (6), a statement 
        described in paragraph (6)(A) which is received by such 
        individual shall be treated as received by such other 
        taxpayer.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.