Higher Education Tax Benefit Compliance Improvement Act

To amend the Internal Revenue Code of 1986 to improve compliance in higher education tax benefits. 1. Short title This Act may be cited as the Higher Education Tax Benefit Compliance Improvement Act 2. Waiver of penalties for certain failures relating to information returns for higher education tuition and related expenses (a) In general Section 6724 (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. 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 (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 (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.

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.