[Federal Register Volume 88, Number 180 (Tuesday, September 19, 2023)]
[Notices]
[Pages 64421-64425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-20211]


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DEPARTMENT OF EDUCATION


Free Application for Federal Student Aid (FAFSA[supreg]) 
Information To Be Verified for the 2024-2025 Award Year

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

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SUMMARY: For each award year, the Secretary publishes in the Federal 
Register a notice announcing the FAFSA information that an institution 
and an applicant may be required to verify, as well as the acceptable 
documentation for verifying FAFSA information. This is the notice for 
the 2024-2025 award year, Assistance Listing Numbers 84.007, 84.033, 
84.063, and 84.268.

FOR FURTHER INFORMATION CONTACT: Vanessa Gomez, U.S. Department of 
Education, 400 Maryland Avenue SW, Room 2C179, Washington, DC 20202. 
Telephone: (202) 453-6708. Email: <a href="/cdn-cgi/l/email-protection#491f28272c3a3a28670e26242c33092c2d672e263f"><span class="__cf_email__" data-cfemail="e3b5828d86909082cda48c8e8699a38687cd848c95">[email protected]</span></a>.
    If you are deaf, hard of hearing, or have a speech disability and 
wish to access telecommunications relay services, please dial 7-1-1.

SUPPLEMENTARY INFORMATION: If the Secretary selects an applicant for 
verification, the applicant's Institutional Student Information Record 
(ISIR) includes flags that indicate (1) that the applicant has been 
selected by the Secretary for verification and (2) the Verification 
Tracking Group (VTG) in which the applicant has been placed. The VTG 
indicates which FAFSA information needs to be verified for the 
applicant and, if appropriate, for the applicant's parent(s) or spouse. 
Beginning with the 2024-2025 award year, the Student Aid Report (SAR) 
is being replaced with the FAFSA Submission Summary. As was the case 
for the SAR, the FAFSA Submission Summary provided to the applicant 
will indicate that the applicant's FAFSA information has been selected 
for verification and direct the applicant to contact the institution 
for further instructions for completing the verification process.
    To help institutions and applicants deal with the challenges 
resulting from the novel coronavirus disease (COVID-19) pandemic, the 
Secretary provided flexibilities to the verification regulations. On 
April 10, 2023, the federally declared national emergency related to 
the COVID-19 pandemic ended. As a result, these flexibilities expired 
at the end of the first payment period that began after April 10, 2023. 
Under 34 CFR 668.4, payment periods are defined for a student enrolled 
in an eligible program measured in standard terms, as the term, i.e., 
semester, trimester, or quarter.
    In accordance with the Fostering Undergraduate Talent by Unlocking 
Resources for Education (FUTURE) Act, much of the applicant's tax 
return information, including information from their spouse and 
parents, will come directly from the IRS and will not be viewable by 
the student and other contributors. Such information that is 
transferred and not edited will essentially be verified and need no 
further verification. However, for instances where income and tax 
information cannot be obtained directly from the IRS, the applicant 
would have to manually enter the necessary information into the FAFSA, 
and that manual entry may be subject to verification.
    The following chart lists, for the 2024-2025 award year, the FAFSA 
information that an institution and an applicant and, if appropriate, 
the applicant's parent(s) or spouse may be required to verify under 34 
CFR 668.56. The chart also lists the acceptable documentation that 
must, under Sec.  668.57, be provided to an institution for that 
information to be verified.

[[Page 64422]]



------------------------------------------------------------------------
           FAFSA information                 Acceptable documentation
------------------------------------------------------------------------
Income information for tax filers......  Items a through h, if
(a) Adjusted Gross Income (AGI)........   transferred directly from the
(b) Income Earned From Work............   IRS and unchanged, do not need
(c) U.S. Income Tax Paid...............   to be verified. When
(d) Untaxed Portions of IRA               information is not transferred
 Distributions.                           from the IRS, and for item i,
(e) Untaxed Portions of Pensions.......   the following documentation is
(f) IRA Deductions and Payments........   sufficient for verification:
(g) Tax Exempt Interest Income.........  (1) A transcript \1\ obtained
(h) Education Credits..................   at no cost from the IRS or
(i) Foreign Income Exempt from Federal    other relevant tax authority
 Taxation.                                of a U.S. territory (Guam,
                                          American Samoa, the U.S.
                                          Virgin Islands) or
                                          commonwealth (Puerto Rico and
                                          the Northern Mariana Islands),
                                          or a foreign government, that
                                          lists 2022 tax account
                                          information of the tax filer;
                                          or
                                         (2) A copy of the income tax
                                          return \1\ and the applicable
                                          schedules \1\ that were filed
                                          with the IRS or other relevant
                                          tax authority of a U.S.
                                          territory, or a foreign
                                          government that lists 2022 tax
                                          account information of the tax
                                          filer.
                                         (3) If item d or e contains a
                                          rollover, collect a signed
                                          statement confirming the
                                          amount of the rollover in the
                                          untaxed pension or IRA
                                          distribution. Note that even
                                          if d or e are transferred as
                                          FTI, rollovers still need to
                                          be verified as they are
                                          manually entered.
Income information for tax filers with   (1) For a student, or the
 special circumstances.                   parent(s) of a dependent
(a) Adjusted Gross Income (AGI)........   student, who filed a 2022
(b) Income Earned from Work............   joint income tax return and
(c) U.S. Income Tax Paid...............   whose income is used in the
(d) Untaxed Portions of IRA               calculation of the applicant's
 Distributions.                           student aid index and who at
(e) Untaxed Portions of Pensions.......   the time the FAFSA was
(f) IRA Deductions and Payments........   completed was separated,
(g) Tax Exempt Interest Income.........   divorced, widowed, or married
(h) Education Credits..................   to someone other than the
(i) Foreign Income Exempt from Federal    individual included on the
 Taxation.                                2022 joint income tax return--
                                         (a) A transcript obtained from
                                          the IRS or other relevant tax
                                          authority that lists 2022 tax
                                          account information of the tax
                                          filer(s); or
                                         (b) A copy of the income tax
                                          return and the applicable
                                          schedules that were filed with
                                          the IRS or other relevant tax
                                          authority that lists 2022 tax
                                          account information of the tax
                                          filer(s); and
                                         (c) A copy of IRS Form W-2 \2\
                                          for each source of 2022
                                          employment income received or
                                          an equivalent document.\2\
                                         (2) For an individual who is
                                          required to file a 2022 IRS
                                          income tax return and has been
                                          granted a filing extension by
                                          the IRS beyond the automatic
                                          six-month extension for tax
                                          year 2022--
                                         (a) A signed statement listing
                                          the sources of any 2022 income
                                          and the amount of income from
                                          each source;
                                         (b) A copy of the IRS's
                                          approval of an extension
                                          beyond the automatic six-month
                                          extension for tax year 2022;
                                          \3\
                                         (c) A copy of IRS Form W-2 \2\
                                          for each source of 2022
                                          employment income received or
                                          an equivalent document; \2\
                                          and
                                         (d) If self-employed, the
                                          signed statement must indicate
                                          the amount of estimated AGI
                                          and U.S. income tax paid for
                                          tax year 2022.
                                         (3) If d or e contains a
                                          rollover, collect a signed
                                          statement confirming the
                                          amount of the rollover in the
                                          untaxed pension or IRA
                                          distribution. Note that even
                                          if d or e are transferred as
                                          FTI, rollovers still need to
                                          be verified as they are
                                          manually entered.
                                         Note: An institution may
                                          require that, after the income
                                          tax return is filed, an
                                          individual granted a filing
                                          extension beyond the automatic
                                          6-month extension submit tax
                                          information by obtaining a
                                          transcript from the IRS, or by
                                          submitting a copy of the
                                          income tax return and the
                                          applicable schedules that were
                                          filed with the IRS that lists
                                          2022 tax account information.
                                          When an institution receives
                                          such information, it must be
                                          used to reverify the income
                                          and tax information reported
                                          on the FAFSA.
                                         (4) For an individual who was
                                          the victim of IRS tax-related
                                          identity theft--
                                         <bullet> A Tax Return DataBase
                                          View (TRDBV) transcript \1\
                                          obtained from the IRS; and
                                         <bullet> A statement signed and
                                          dated by the tax filer
                                          indicating that he or she was
                                          a victim of IRS tax-related
                                          identity theft and that the
                                          IRS has been made aware of the
                                          tax-related identity theft.

[[Page 64423]]

 
                                         Note: Tax filers may inform the
                                          IRS of the tax-related
                                          identity theft and obtain a
                                          TRDBV transcript by calling
                                          the IRS's Identity Protection
                                          Specialized Unit (IPSU) at 1-
                                          800-908-4490. Unless the
                                          institution has reason to
                                          suspect the authenticity of
                                          the TRDBV transcript provided
                                          by the IRS, a signature or
                                          stamp or any other validation
                                          from the IRS is not needed.
                                         (5) For an individual who filed
                                          an amended income tax return
                                          with the IRS, a signed copy of
                                          the IRS Form 1040X that was
                                          filed with the IRS for tax
                                          year 2022 or documentation
                                          from the IRS that include the
                                          change(s) made to the tax
                                          filer's 2022 tax information,
                                          in addition to one of the
                                          following--
                                         (a) Updated income and tax
                                          information from the IRS on an
                                          ISIR record with all tax
                                          information from the original
                                          tax return;
                                         (b) A transcript obtained from
                                          the IRS that lists 2022 tax
                                          account information of the tax
                                          filer(s); or
                                         (c) A signed copy of the 2022
                                          IRS Form 1040 and the
                                          applicable schedules that were
                                          filed with the IRS.
Income information for non-tax filers..  For an individual who has not
Income Earned from Work................   filed and, under IRS or other
                                          relevant tax authority rules
                                          (e.g., the Republic of the
                                          Marshall Islands, the Republic
                                          of Palau, the Federated States
                                          of Micronesia, a U.S.
                                          territory or commonwealth or a
                                          foreign government), is not
                                          required to file a 2022 income
                                          tax return--
                                         (1) A signed and dated
                                          statement certifying--
                                         (a) That the individual is not
                                          required to file a 2022 income
                                          tax return; and
                                         (b) The sources and amounts of
                                          earnings, other income, and
                                          resources that supported the
                                          individual(s) for the 2022 tax
                                          year;
                                         (2) For individuals without a
                                          Social Security number (SSN),
                                          Individual Taxpayer
                                          Identification Number (ITIN),
                                          or Employer Identification
                                          Number (EIN), that they do not
                                          have an SSN, ITIN, or EIN;
                                         (3) A copy of IRS Form W-2 \2\
                                          for each source of 2022
                                          employment income received or
                                          an equivalent document \2\;
                                          and
                                         (4) Except for dependent
                                          students, verification of non-
                                          filing \4\ for individuals who
                                          would file a return with a
                                          relevant tax authority other
                                          than the IRS dated on or after
                                          October 1, 2023.
                                         Note: The collection of
                                          documentation to verify income
                                          earned from work is also used
                                          to determine if the applicant
                                          (and the applicable spouse or
                                          parent) was required to file a
                                          U.S. income tax return for the
                                          2022 tax year.
Family Size............................  Since family size is based on
                                          the number of individuals
                                          listed and claimed on the IRS
                                          tax return, if transferred
                                          directly from the IRS and
                                          unchanged, family size does
                                          not need to be verified.
                                          However, when information is
                                          not transferred from the IRS,
                                          or if the applicant updated
                                          their family size when
                                          presented with the opportunity
                                          to do so on their FAFSA, the
                                          following documentation is
                                          sufficient for verification:
                                         A statement signed by the
                                          applicant and, if the
                                          applicant is a dependent
                                          student, by one of the
                                          applicant's parents, that
                                          lists the name and age of each
                                          family member for the 2024-
                                          2025 award year and the
                                          relationship of that family
                                          member to the applicant.
                                         Note: Verification of family
                                          size is not required if--
                                         <bullet> For a dependent
                                          student, the family size
                                          indicated on the ISIR is two
                                          and the parent is single,
                                          separated, divorced, or
                                          widowed, or the household size
                                          indicated on the ISIR is three
                                          if the parents are married,
                                          remarried or unmarried and
                                          living together; or
                                         <bullet> For an independent
                                          student, the family size
                                          indicated on the ISIR is one
                                          and the applicant is single,
                                          separated, divorced, or
                                          widowed, or the household size
                                          indicated on the ISIR is two
                                          if the applicant is married or
                                          remarried.
Identity/Statement of Educational        (1) An applicant must appear in
 Purpose.                                 person and present the
                                          following documentation to an
                                          institutionally authorized
                                          individual to verify the
                                          applicant's identity:
                                            (a) An unexpired valid
                                             government-issued photo
                                             identification \5\ such as,
                                             but not limited to, a
                                             driver's license, non-
                                             driver's identification
                                             card, other State-issued
                                             identification, or U.S.
                                             passport. The institution
                                             must maintain an annotated
                                             copy of the unexpired valid
                                             government-issued photo
                                             identification that
                                             includes--
                                              i. The date the
                                               identification was
                                               presented; and
                                              ii. The name of the
                                               institutionally
                                               authorized individual who
                                               reviewed the
                                               identification; and

[[Page 64424]]

 
                                            (b) A signed statement using
                                             the exact language as
                                             follows, except that the
                                             student's identification
                                             number is optional if
                                             collected elsewhere on the
                                             same page as the statement:
                                         Statement of Educational
                                          Purpose
                                         I certify that I _______ am
                                         (Print Student's Name)
                                         the individual signing this
                                          Statement of Educational
                                          Purpose and that the Federal
                                          student financial assistance I
                                          may receive will only be used
                                          for educational purposes and
                                          to pay the cost of attending
                                          for 2024-2025.
                                         (Name of Postsecondary
                                          Educational Institution)
                                         _______ _______
                                         (Student's Signature) (Date)
                                         _______
                                         (Student's ID Number)
                                         (2) If an institution
                                          determines that an applicant
                                          is unable to appear in person
                                          to present an unexpired valid
                                          government-issued photo
                                          identification and execute the
                                          Statement of Educational
                                          Purpose, the applicant must
                                          provide the institution with--
                                         (a) A copy of an unexpired
                                          valid government-issued photo
                                          identification,\5\ such as,
                                          but not limited to, a driver's
                                          license, non-driver's
                                          identification card, other
                                          State-issued identification,
                                          or U.S. passport that is
                                          acknowledged in a notary
                                          statement or that is presented
                                          to a notary; and
                                         (b) An original notarized
                                          statement signed by the
                                          applicant using the exact
                                          language as follows, except
                                          that the student's
                                          identification number is
                                          optional if collected
                                          elsewhere on the same page as
                                          the statement:
                                         Statement of Educational
                                          Purpose
                                         I certify that I _______ am
                                         (Print Student's Name)
                                         the individual signing this
                                          Statement of Educational
                                          Purpose and that the Federal
                                          student financial assistance I
                                          may receive will only be used
                                          for educational purposes and
                                          to pay the cost of attending
                                          _______ for 2024-2025.
                                         (Name of Postsecondary
                                          Educational Institution)
                                         _______ _______
                                         (Student's Signature) (Date)
                                         _______
                                         (Student's ID Number)
------------------------------------------------------------------------
\1\ This footnote applies, where applicable, whenever an income tax
  return, the applicable schedules, or transcript is mentioned in the
  above chart.
The copy of the 2022 income tax return must include the signature of the
  tax filer, or one of the filers of a joint income tax return, or the
  signed, stamped, typed, or printed name and address of the preparer of
  the income tax return and the preparer's Social Security number,
  Employer Identification Number, or Preparer Tax Identification Number.
For a tax filer who filed an income tax return other than an IRS form,
  such as a foreign or Puerto Rican tax form, the institution must use
  the income information (converted to U.S. dollars) from the lines of
  that form that correspond most closely to the income information
  reported on a U.S. income tax return.
An individual who did not retain a copy of his or her 2022 tax account
  information, and for whom that information cannot be located by the
  IRS or other relevant tax authority, must submit to the institution--
a. Copies of all IRS Form W-2s for each source of 2022 employment income
  or equivalent documents; or
b. If the individual is self-employed or filed an income tax return with
  a government of a U.S. territory or commonwealth or a foreign
  government, a signed statement certifying the amount of AGI and income
  taxes paid for tax year 2022; and
c. Documentation from relevant tax authorities other than the IRS that
  indicates the individual's 2022 tax account information cannot be
  located; and
d. A signed statement that indicates that the individual did not retain
  a copy of his or her 2022 tax account information.
If an individual who was the victim of IRS tax-related identity theft is
  unable to obtain a TRDBV, the institution may accept an equivalent
  document provided by the IRS or a copy of the signed 2022 income tax
  return the individual filed with the IRS.
\2\ An individual who is required to submit an IRS Form W-2 or an
  equivalent document but did not maintain a copy should request a
  duplicate from the employer who issued the original or from the
  government agency that issued the equivalent document. If the
  individual is unable to obtain a duplicate W-2 or an equivalent
  document in a timely manner, the institution may permit that
  individual to provide a signed statement, in accordance with 34 CFR
  668.57(a)(6), that includes--
(a) The amount of income earned from work;
(b) The source of that income; and
(c) The reason why the IRS Form W-2, or an equivalent document, is not
  available in a timely manner.
\3\ For an individual who was called up for active duty or for
  qualifying National Guard duty during a war or other military
  operation or national emergency, an institution must accept a
  statement from the individual certifying that he or she has not filed
  an income tax return or a request for a filing extension because of
  that service.
\4\ If an individual is unable to obtain verification of non-filing from
  a relevant tax authority and, based upon the institution's
  determination, it has no reason to question the student's or family's
  good-faith effort to obtain the required documentation, the
  institution may accept a signed statement certifying that the
  individual attempted to obtain the verification of non-filing from the
  relevant tax authority and was unable to obtain the required
  documentation.
\5\ An unexpired valid government-issued photo identification is one
  issued by the U.S. government, any of the 50 States, the District of
  Columbia, the Commonwealth of Puerto Rico, a federally recognized
  American Indian and Alaska Native Tribe, American Samoa, Guam, the
  Virgin Islands, the Commonwealth of the Northern Mariana Islands, the
  Republic of the Marshall Islands, the Federated States of Micronesia,
  or the Republic of Palau.


[[Page 64425]]

    The individual FAFSA items that an applicant must verify are based 
upon the Verification Tracking Group to which the applicant is assigned 
as outlined in the following chart.

------------------------------------------------------------------------
                                                      FAFSA information
 Verification tracking flag       Verification         required to be
                               tracking group name        verified
------------------------------------------------------------------------
V1..........................  Standard              Tax Filers
                               Verification Group.  <bullet> Adjusted
                                                     Gross Income.
                                                    <bullet> Income
                                                     Earned From Work.
                                                    <bullet> U.S. Income
                                                     Tax Paid.
                                                    <bullet> Untaxed
                                                     Portions of IRA
                                                     Distributions.
                                                    <bullet> Untaxed
                                                     Portions of
                                                     Pensions.
                                                    <bullet> IRA
                                                     Deductions and
                                                     Payments.
                                                    <bullet> Tax Exempt
                                                     Interest Income.
                                                    <bullet> Education
                                                     Tax Credits.
                                                    <bullet> Foreign
                                                     Income Exempt from
                                                     Federal Taxation.
                                                    Non-Tax Filers
                                                    <bullet> Income
                                                     Earned from Work.
                                                    Tax Filers and Non-
                                                     Tax Filers
                                                    <bullet> Family
                                                     Size.
V2..........................  Reserved............  N/A.
V3..........................  Reserved............  N/A.
V4..........................  Custom Verification   <bullet> Identity/
                               Group.                Statement of
                                                     Educational
                                                     Purpose.
V5..........................  Aggregate             Tax Filers
                               Verification Group.  <bullet> Adjusted
                                                     Gross Income.
                                                    <bullet> Income
                                                     Earned From Work.
                                                    <bullet> U.S. Income
                                                     Tax Paid.
                                                    <bullet> Untaxed
                                                     Portions of IRA
                                                     Distributions.
                                                    <bullet> Untaxed
                                                     Portions of
                                                     Pensions.
                                                    <bullet> IRA
                                                     Deductions and
                                                     Payments.
                                                    <bullet> Tax Exempt
                                                     Interest Income.
                                                    <bullet> Education
                                                     Tax Credits.
                                                    <bullet> Foreign
                                                     Income Exempt from
                                                     Federal Taxation.
                                                    Non-Tax Filers
                                                    <bullet> Income
                                                     Earned from Work.
                                                    Tax Filers and Non-
                                                     Tax Filers
                                                    <bullet> Family
                                                     Size.
                                                    <bullet> Identity/
                                                     Statement of
                                                     Educational
                                                     Purpose.
V6..........................  Reserved............  N/A.
------------------------------------------------------------------------

Other Sources for Detailed Information

    We provide a more detailed discussion on the verification process 
in the following resources that will be available on the Knowledge 
Center web page at https://fsapartners.ed.gov/knowledge-center:
    <bullet> 2024-2025 Application and Verification Guide.
    <bullet> 2024-2025 FAFSA Specifications Guide: Volume 6- ISIR 
Guide, Volume 7--Comment Codes.
    <bullet> 2024-2025 COD Technical Reference.
    <bullet> Program Integrity Information--Questions and Answers on 
Verification at www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html.
    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
braille, large print, audiotape, or compact disc or other accessible 
format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. At this site you can view this 
document, as well as all other documents of this Department published 
in the Federal Register, in text or Portable Document Format (PDF). To 
use PDF, you must have Adobe Acrobat Reader, which is available free at 
the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.
    Program Authority: 20 U.S.C. 1070a, 1070b-1070b-4, 1087a-1087j, and 
20 U.S.C. 1087-51--1087-58.

Nasser H. Paydar,
Assistant Secretary for Postsecondary Education.
[FR Doc. 2023-20211 Filed 9-18-23; 8:45 am]
BILLING CODE 4000-01-P


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