Reduce Barriers to College Act

To require the Internal Revenue Service to meet higher standards in security screening and to improve the process for obtaining return information and verification of nonfiling in connection with completing a Free Application for Federal Student Aid (FAFSA). 1. Short title This Act may be cited as the Reduce Barriers to College Act 2. Improved IRS identity authentication process The Commissioner of Internal Revenue shall ensure that the implemented authentication processes used for all current and future online applications provide the level of assurance required by National Institute for Standards and Technology standards for the determined level of authentication risk, as recommended by the Treasury Inspector General for Tax Administration. 3. Verification of nonfiling in connection with FAFSA application (a) Online portal (1) In general Not later than 90 days after the date of the enactment of this Act, the Commissioner of Internal Revenue (in consultation with the Secretary of Education) shall establish an online portal for individuals to request and have submitted a verification of nonfiling for any taxable year to the Secretary of Education as part of the process of completing the individual’s Free Application for Federal Student Aid. (2) Authentication Any such verification shall not be approved for submission through such portal process unless the individual’s identity is authenticated by a valid social security number and any one of the following: (A) Personal account number from a credit card, mortgage, home equity loan, home equity line of credit, or car loan. (B) Mobile phone with the individual’s name on the account. (C) Household utility bill associated with the individual’s mailing address. (D) Student transcripts. (E) Bank account statement. (F) Passport or State issued driver’s license. (b) Response time for verification of nonfiling in connection with FAFSA The Internal Revenue Service shall, not later than 10 business days after receipt from the individual, process any request for, or respond to any inquiries relating to, a verification of nonfiling in connection with an individual’s Free Application for Federal Student Aid. 4. Simplified needs test Section 479 of the Higher Education Act of 1965 ( 20 U.S.C. 1087ss (1) in subsection (b)(1)(B)(i)(II), by inserting before the semicolon at the end the following: or has obtained a verification of nonfiling from the Commissioner of Internal Revenue (2) in subsection (c)(2)(A)(ii), by inserting before the semicolon at the end the following: or has obtained a verification of nonfiling from the Commissioner of Internal Revenue

Summary: Reduce Barriers to College Act This bill requires the Internal Revenue Service (IRS) to ensure that the implemented authentication processes used for all current and future online applications provide the level of assurance required by National Institute of Standards and Technology standards for the determined level of authentication risk. Within 90 days of the enactment of this bill, the IRS must establish an online portal for individuals to request that a verification of nonfiling for any taxable year be submitted to the Department of Education as part of the process of completing the individual's Free Application for Federal Student Aid. The portal must authenticate an individual's identity using a valid Social Security number and any one of several documents specified in the bill. The bill amends the Higher Education Act of 1965 to permit certain independent students applying for federal student aid using the simplified needs test to obtain a verification of nonfiling from the IRS in lieu of certifying that the student (and the student's spouse, if any) is not required to file a federal income tax return.