II 

114TH CONGRESS 

1ST SESSION S. 1413 

To amend the Internal Revenue Code of 1986 to improve compliance in 

higher education tax benefits. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2015 

Mr. COATS (for himself and Mr. HATCH) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to improve 

compliance in higher education tax benefits. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Higher Education Tax 

5 Benefit Compliance Improvement Act’’. 


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1 SEC. 2. WAIVER OF PENALTIES FOR CERTAIN FAILURES RE2 LATING TO INFORMATION RETURNS FOR 

3 HIGHER EDUCATION TUITION AND RELATED 

4 EXPENSES. 

5 (a) IN GENERAL.—Section 6724 of the Internal Rev6 enue Code of 1986 is amended by adding at the end the 

7 following new subsection: 

8 ‘‘(f) SPECIAL RULES FOR RETURNS RELATED TO

9 HIGHER EDUCATION TUITION AND RELATED EX10 PENSES.—Section 6721 shall not apply to any failure by 

11 an eligible educational institution (as defined in section 

12 25A) to provide the TIN of an individual described in sec13 tion 6050S(b)(2)(A) on any information return described 

14 in subsection (d)(1)(B)(xii) if the person required to file 

15 the return certifies under penalty of perjury that such per16 son has complied with standards promulgated by the Sec17 retary for obtaining the individual’s TIN, unless it is 

18 shown that such certification is materially untrue.’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 this section shall apply to returns filed after the date of 

21 the enactment of this Act. 

22 SEC. 3. PAYEE STATEMENT REQUIRED TO CLAIM CERTAIN 

23 EDUCATION TAX BENEFITS. 

24 (a) AMERICAN OPPORTUNITY CREDIT, HOPE SCHOL25 ARSHIP CREDIT, AND LIFETIME LEARNING CREDIT.— 


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1 (1) IN GENERAL.—Subsection (g) of section 

2 25A of the Internal Revenue Code of 1986 is 

3 amended by adding at the end the following new 

4 paragraph: 

5 ‘‘(8) PAYEE STATEMENT REQUIREMENT.—No 

6 credit shall be allowed under this section for any 

7 qualified tuition and related expenses paid by the 

8 taxpayer unless— 

9 ‘‘(A) the taxpayer has received a statement 

10 provided under section 6050S(d) which contains 

11 the TIN of the individual for whom a payment 

12 of qualified tuition and related expenses was 

13 made, or 

14 ‘‘(B) in any case in which— 

15 ‘‘(i) the qualified tuition and related 

16 expenses are for a course for which aca17 demic credit is not offered by the eligible 

18 educational institution, or 

19 ‘‘(ii) the eligible educational institu20 tion does not provide the taxpayer with a 

21 statement described in subparagraph (A) 

22 with respect to such qualified tuition and 

23 related expenses, 


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1 the taxpayer maintains a record, in such form 

2 and manner as prescribed by the Secretary, 

3 showing the date and amount of the expenses.’’. 

4 (2) CONFORMING AMENDMENT.—Paragraph (3) 

5 of section 25A(g) of such Code is amended by add6 ing at the end the following flush sentence: 

7 ‘‘For purposes of paragraph (8), a statement de8 scribed in paragraph (8)(A) which is received by 

9 such individual shall be treated as received by such 

10 other taxpayer.’’. 

11 (b) DEDUCTION FOR QUALIFIED TUITION AND RE12 LATED EXPENSES.— 

13 (1) IN GENERAL.—Subsection (d) of section 

14 222 of the Internal Revenue Code of 1986 is amend15 ed by redesignating paragraph (6) as paragraph (7) 

16 and by inserting after paragraph (5) the following 

17 new paragraph: 

18 ‘‘(6) PAYEE STATEMENT REQUIREMENT.—No 

19 deduction shall be allowed under this section for any 

20 qualified tuition and related expenses paid by the 

21 taxpayer unless— 

22 ‘‘(A) the taxpayer has received a statement 

23 provided under section 6050S(d) which contains 

24 the TIN of the individual to whom a payment 


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1 of qualified tuition and related expenses was 

2 made, or 

3 ‘‘(B) in any case in which— 

4 ‘‘(i) the qualified tuition and related 

5 expenses are for a course for which aca6 demic credit is not offered by the eligible 

7 educational institution, or 

8 ‘‘(ii) the eligible educational institu9 tion does not provide the taxpayer with a 

10 statement described in subparagraph (A) 

11 with respect to such qualified tuition and 

12 related expenses, 

13 the taxpayer maintains a record, in such form 

14 and manner as prescribed by the Secretary, 

15 showing the date and amount of the expenses.’’. 

16 (2) CONFORMING AMENDMENT.—Paragraph (3) 

17 of section 222(c) of such Code is amended by adding 

18 at the end the following sentence: ‘‘For purposes of 

19 paragraph (6), a statement described in paragraph 

20 (6)(A) which is received by such individual shall be 

21 treated as received by such other taxpayer.’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 the date of the enactment of this Act. 

Æ 


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