I 

115TH CONGRESS 

2D SESSION H. R. 7386 

To amend the Internal Revenue Code of 1986 and the Higher Education 

Act of 1965 to facilitate the disclosure of tax return information to 

carry out the Higher Education Act of 1965, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 20, 2018 

Mr. WALBERG (for himself and Ms. DELBENE) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to 

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To amend the Internal Revenue Code of 1986 and the Higher Education Act of 1965 to facilitate the disclosure 

of tax return information to carry out the Higher Education Act of 1965, and for other purposes. 

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 ‘‘Faster Access to Fed5 eral Student Aid Act of 2018’’. 


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1 SEC. 2. SECURE DISCLOSURE OF TAX-RETURN INFORMA2 TION TO CARRY OUT THE HIGHER EDU3 CATION ACT OF 1965. 

4 (a) AMENDMENTS TO THE INTERNAL REVENUE

5 CODE OF 1986.— 

6 (1) IN GENERAL.—Paragraph (13) of section 

7 6103(l) of the Internal Revenue Code of 1986 is 

8 amended to read as follows: 

9 ‘‘(13) DISCLOSURE OF RETURN INFORMATION

10 TO CARRY OUT THE HIGHER EDUCATION ACT OF

11 1965.— 

12 ‘‘(A) INCOME-CONTINGENT OR INCOME13 BASED REPAYMENT AND TOTAL AND PERMA14 NENT DISABILITY DISCHARGE.—The Secretary 

15 shall, upon written request from the Secretary 

16 of Education, disclose to officers, employees, 

17 and contractors of the Department of Edu18 cation, as specifically authorized and designated 

19 by the Secretary of Education, only for the pur20 pose of (and to the extent necessary in) estab21 lishing, renewing, administering, and con22 ducting analyses and forecasts for estimating 

23 costs related to income-contingent or income24 based repayment programs, and the discharge 

25 of loans based on a total and permanent dis26 ability (within the meaning of section 437(a) of 


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1 the Higher Education Act of 1965), under title 

2 IV of the Higher Education Act of 1965, the 

3 following return information (as defined in sub4 section (b)(2)) with respect to taxpayers identi5 fied by the Secretary of Education as partici6 pating in the loan programs under title IV of 

7 such Act, for taxable years specified by such 

8 Secretary: 

9 ‘‘(i) Taxpayer identity information 

10 with respect to such taxpayer. 

11 ‘‘(ii) The filing status of such tax12 payer. 

13 ‘‘(iii) Type of tax return from which 

14 the return information is provided. 

15 ‘‘(iv) The adjusted gross income of 

16 such taxpayer. 

17 ‘‘(v) Total number of exemptions 

18 claimed, or total number of individuals and 

19 dependents claimed, as applicable, on the 

20 return. 

21 ‘‘(vi) Number of children with respect 

22 to which tax credits under section 24 are 

23 claimed on the return. 

24 ‘‘(vii) Other information determined 

25 to be necessary by agreement between the 


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1 Secretary and the Secretary of Education 

2 to administer the Federal financial aid pro3 grams as required by the Higher Edu4 cation Act of 1965. 

5 ‘‘(B) FEDERAL STUDENT FINANCIAL

6 AID.—The Secretary shall, upon written request 

7 from the Secretary of Education, disclose to of8 ficers, employees, and contractors of the De9 partment of Education, as specifically author10 ized and designated by the Secretary of Edu11 cation, only for the purpose of (and to the ex12 tent necessary in) determining eligibility for, 

13 and amount of, Federal student financial aid 

14 under programs authorized by title IV of the 

15 Higher Education Act of 1965 and conducting 

16 analyses and forecasts for estimating costs re17 lated to such programs, the following return in18 formation (as defined in subsection (b)(2)) with 

19 respect to taxpayers identified by the Secretary 

20 of Education as applicants for Federal student 

21 financial aid under title IV of such Act, for tax22 able years specified by such Secretary: 

23 ‘‘(i) Taxpayer identity information 

24 with respect to such taxpayer. 


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1 ‘‘(ii) The filing status of such tax2 payer. 

3 ‘‘(iii) Type of tax return from which 

4 the return information is provided. 

5 ‘‘(iv) The adjusted gross income of 

6 such taxpayer. 

7 ‘‘(v) The amount of any net earnings 

8 from self-employment (as defined in sec9 tion 1402), wages (as defined in section 

10 3121(a) or 3401(a)), and taxable income 

11 from a farming business (as defined in sec12 tion 236A(e)(4)) for the period reported on 

13 the return. 

14 ‘‘(vi) The total income tax of such 

15 taxpayer. 

16 ‘‘(vii) Total number of exemptions 

17 claimed, or total number of individuals and 

18 dependents claimed, as applicable, on the 

19 return. 

20 ‘‘(viii) Number of children with re21 spect to which tax credits under section 24 

22 are claimed on the return. 

23 ‘‘(ix) Amount of any credit claimed 

24 under section 25A for the taxable year. 


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1 ‘‘(x) Amount of individual retirement 

2 account distributions not included in ad3 justed gross income for the taxable year. 

4 ‘‘(xi) Amount of individual retirement 

5 account contributions and payments to 

6 self-employed SEP, Keogh, and other 

7 qualified plans which were deducted from 

8 income for the taxable year. 

9 ‘‘(xii) The amount of tax-exempt in10 terest. 

11 ‘‘(xiii) Amounts from retirement pen12 sions and annuities not included in ad13 justed gross income for the taxable year. 

14 ‘‘(xiv) If applicable, the fact that 

15 there is no return filed for such taxpayer 

16 for the applicable year. 

17 ‘‘(xv) Other information determined to 

18 be necessary by agreement between the 

19 Secretary and the Secretary of Education 

20 to administer the Federal financial aid pro21 grams as required by the Higher Edu22 cation Act of 1965. 

23 ‘‘(C) RESTRICTION ON USE OF DISCLOSED

24 INFORMATION.— 


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1 ‘‘(i) IN GENERAL.—Return informa2 tion disclosed under subparagraphs (A) 

3 and (B) may be used by officers, employ4 ees, and contractors of the Department of 

5 Education, as specifically authorized and 

6 designated by the Secretary of Education, 

7 only for the purposes and to the extent 

8 necessary described in such subparagraphs 

9 and for mitigating risks (as defined in 

10 clause (ii)) relating to the programs de11 scribed in such subparagraphs. 

12 ‘‘(ii) MITIGATING RISKS.—For pur13 poses of this subparagraph, the term ‘miti14 gating risks’ means, with respect to the 

15 programs described in subparagraphs (A) 

16 and (B)— 

17 ‘‘(I) analyzing or estimating costs 

18 associated with potential changes to 

19 the need-analysis formula, 

20 ‘‘(II) oversight activities by the 

21 Office of Inspector General of the De22 partment of Education as authorized 

23 by the Inspector General Act of 1978, 

24 as amended, 


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1 ‘‘(III) developing or admin2 istering statistical models that inform 

3 support to populations of Federal stu4 dent loan borrowers who are at risk of 

5 default or delinquency, 

6 ‘‘(IV) reducing the net cost of 

7 improper payments to Federal finan8 cial aid recipients, and 

9 ‘‘(V) producing aggregate statis10 tics for reporting, research, or con11 sumer information on the performance 

12 of programs or institutions of higher 

13 education participating in the pro14 grams under title IV of the Higher 

15 Education Act of 1965. 

16 Such term does not include the conduct of 

17 criminal investigations or prosecutions. 

18 ‘‘(iii) REDISCLOSURE TO INSTITU19 TIONS OF HIGHER EDUCATION, STATE

20 HIGHER EDUCATION AGENCIES, AND DES21 IGNATED SCHOLARSHIP ORGANIZATIONS.— 

22 The Secretary of Education, and officers, 

23 employees, and contractors of the Depart24 ment of Education, may disclose return in25 formation received under subparagraph 


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1 (B), solely for the use in the application, 

2 award, and administration of Federal stu3 dent financial aid, State aid, or aid award4 ed by eligible institutions or such entities 

5 as the Secretary of Education may des6 ignate, to the following persons: 

7 ‘‘(I) An institution of higher edu8 cation with which the Secretary of 

9 Education has an agreement under 

10 subpart 1 of part A, or part D or E, 

11 of title IV of the Higher Education 

12 Act of 1965. 

13 ‘‘(II) A State higher education 

14 agency. 

15 ‘‘(III) A scholarship organization 

16 which is designated by the Secretary 

17 of Education as of the date of the en18 actment of the Faster Access to Fed19 eral Student Aid Act of 2018 as an 

20 organization eligible to receive the in21 formation provided under this clause. 

22 The preceding sentence shall only apply to 

23 the extent that the taxpayer with respect 

24 to whom the return information relates 

25 provides consent for such disclosure to the 


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1 Secretary of Education as part of the ap2 plication for Federal student financial aid 

3 under title IV of the Higher Education Act 

4 of 1965. 

5 ‘‘(D) REQUIRED NOTIFICATION PERI6 ODS.— 

7 ‘‘(i) NOTIFICATION TO CONGRESS.— 

8 The Secretary and the Secretary of Edu9 cation shall issue joint notifications to the 

10 Committees on Finance and Health, Edu11 cation, Labor, and Pensions of the Senate 

12 and the Committees on Ways and Means 

13 and Education and the Workforce of the 

14 House of Representatives not less than 

15 120 days prior to the first disclosure of 

16 any type of return information under sub17 paragraph (A)(vii) or (B)(xv) with respect 

18 to which such a notification has not been 

19 previously made. 

20 ‘‘(ii) PUBLIC NOTICE AND COM21 MENT.—There shall be a public notice and 

22 comment period beginning not less than 60 

23 days prior to the first disclosure of any 

24 type of return information under subpara25 graph (A)(vii) or (B)(xv) with respect to 


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1 which such a notification has not been pre2 viously made, subsequent to the period al3 lotted for Congressional comment under 

4 clause (i).’’. 

5 (2) CONFIDENTIALITY OF RETURN INFORMA6 TION.—Section 6103(a)(3) of such Code is amended 

7 by inserting ‘‘, (13)(A), (13)(B)’’ after ‘‘(12)’’. 

8 (3) CONFORMING AMENDMENTS.—Section 

9 6103(p)(4) of such Code is amended— 

10 (A) by inserting ‘‘(A), (13)(B)’’ after 

11 ‘‘(13)’’ each place it occurs; and 

12 (B) by inserting ‘‘, (13)(A), (13)(B)’’ after 

13 ‘‘(l)(10)’’ each place it occurs. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to disclosures made under section 

16 6103(l)(13) of the Internal Revenue Code of 1986 (as 

17 amended by this section) after the date of the enactment 

18 of this Act. 

19 SEC. 3. NOTIFICATION OF REQUEST FOR TAX RETURN IN20 FORMATION. 

21 (a) IN GENERAL.—Part G of title IV of the Higher 

22 Education Act of 1965 (20 U.S.C. 1088 et seq.) is amend23 ed by adding at the end the following: 


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1 ‘‘SEC. 494. NOTIFICATION OF REQUEST FOR TAX RETURN 

2 INFORMATION. 

3 ‘‘The Secretary shall advise students and borrowers 

4 who submit an application for Federal student financial 

5 aid under this title or for the discharge of a loan based 

6 on permanent and total disability, as described in section 

7 437(a), or who request an income-contingent or income8 based repayment plan on their loan (as well as parents 

9 and spouses who sign such an application or request or 

10 a Master Promissory Note on behalf of those students and 

11 borrowers) that the Secretary has the authority to request 

12 that the Internal Revenue Service disclose their tax return 

13 information (as well as that of parents and spouses who 

14 sign such an application or request or a Master Promis15 sory Note on behalf of those students and borrowers) to 

16 officers, employees, and contractors of the Department of 

17 Education as authorized under section 6103(1)(13) of the 

18 Internal Revenue Code of 1986, to the extent necessary 

19 for the Secretary to carry out this title.’’. 

20 (b) CONFORMING AMENDMENT.—Section 484(q) of 

21 the Higher Education Act of 1965 (20 U.S.C. 1091(q)) 

22 is amended to read as follows: 

23 ‘‘(q) reserved’’. 

24 SEC. 4. REPORTS ON IMPLEMENTATION. 

25 (a) IN GENERAL.—Not later than each specified 

26 date, the Secretary of Education and the Secretary of the 


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1 Treasury shall issue joint reports to the Committees on 

2 Health, Education, Labor, and Pensions and Finance of 

3 the Senate and the Committees on Education and the 

4 Workforce and Ways and Means of the House of Rep5 resentatives regarding the amendments made by this Act. 

6 Each such report shall include, as applicable— 

7 (1) an update on the status of implementation 

8 of the amendments made by this Act; 

9 (2) an evaluation of the processing of applica10 tions for Federal student financial aid, and applica11 tions for income-based repayment and income con12 tingent repayment, under title IV of the Higher 

13 Education Act of 1965 (20 U.S.C. 1070 et seq.), in 

14 accordance with the amendments made by this Act; 

15 and 

16 (3) implementation issues and suggestions for 

17 potential improvements. 

18 (b) SPECIFIED DATE.—For purposes of subsection 

19 (a), the term ‘‘specified date’’ means— 

20 (1) the date that is 90 days after the date of 

21 the enactment of this Act; 

22 (2) the date that is 120 days after the first day 

23 that the disclosure process established under section 

24 6103(l)(13) of the Internal Revenue Code of 1986, 

25 as amended by section 2(a) of this Act, is operVerDate Sep 11 2014 00:58 Dec 27, 2018 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H7386.IH H7386

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1 ational and accessible to officers, employees, and 

2 contractors of the Department of Education (as spe3 cifically authorized and designated by the Secretary 

4 of Education); and 

5 (3) the date that is 1 year after the report date 

6 described in paragraph (2). 

Æ 


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