I 
116TH CONGRESS 
1ST SESSION 
H. R. 640 
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 
JANUARY 17, 2019 
Mr. DOGGETT (for himself and Mr. BUCHANAN) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Education and Labor, for a period to be subse-
quently 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 High-
er Education Act of 1965 to facilitate the disclosure 
of tax return information to carry out the Higher Edu-
cation Act of 1965, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Student Aid Sim-
plification Act’’. 
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SEC. 2. DISCLOSURE OF CERTAIN TAX RETURN INFORMA-
TION TO THE SECRETARY OF EDUCATION. 
(a) IN GENERAL.—Paragraph (13) of section 6103(l) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(13) DISCLOSURE OF RETURN INFORMATION 
TO THE SECRETARY OF EDUCATION.— 
‘‘(A) INCOME-CONTINGENT
OR
INCOME- 
BASED REPAYMENT AND TOTAL AND PERMA-
NENT DISABILITY DISCHARGE.—The Secretary 
shall, upon written request from the Secretary 
of Education, disclose to officers, employees, 
and contractors of the Department of Edu-
cation, as specifically authorized and designated 
by the Secretary of Education, only for the pur-
pose of (and to the extent necessary in) estab-
lishing, renewing, administering, and con-
ducting analyses and forecasts for estimating 
costs related to income-contingent or income- 
based repayment programs, and the discharge 
of loans based on a total and permanent dis-
ability (within the meaning of section 437(a) of 
the Higher Education Act of 1965), under title 
IV of the Higher Education Act of 1965 (as in 
effect on the date of enactment of this para-
graph), the following return information (as de-
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fined in subsection (b)(2)) with respect to tax-
payers identified by the Secretary of Education 
as participating in the loan programs under 
title IV of such Act, for taxable years specified 
by such Secretary: 
‘‘(i) Taxpayer identity information 
with respect to such taxpayer. 
‘‘(ii) The filing status of such tax-
payer. 
‘‘(iii) Type of tax return from which 
the return information is provided. 
‘‘(iv) The adjusted gross income of 
such taxpayer. 
‘‘(v) Total number of exemptions 
claimed, or total number of individuals and 
dependents claimed, as applicable, on the 
return. 
‘‘(vi) Number of children with respect 
to which tax credits under section 24 are 
claimed on the return. 
‘‘(B) 
FEDERAL
STUDENT
FINANCIAL 
AID.—The Secretary shall, upon written request 
from the Secretary of Education, disclose to of-
ficers, employees, and contractors of the De-
partment of Education, as specifically author-
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ized and designated by the Secretary of Edu-
cation, only for the purpose of (and to the ex-
tent necessary in) determining eligibility for, 
and amount of, Federal student financial aid 
under programs authorized by title IV of the 
Higher Education Act of 1965 (as in effect on 
the date of enactment of this paragraph) and 
conducting analyses and forecasts for esti-
mating costs related to such programs, the fol-
lowing return information (as defined in sub-
section (b)(2)) with respect to taxpayers identi-
fied by the Secretary of Education as applicants 
for Federal student financial aid under title IV 
of such Act, for taxable years specified by such 
Secretary: 
‘‘(i) Taxpayer identity information 
with respect to such taxpayer. 
‘‘(ii) The filing status of such tax-
payer. 
‘‘(iii) Type of tax return from which 
the return information is provided. 
‘‘(iv) The adjusted gross income of 
such taxpayer. 
‘‘(v) The amount of any net earnings 
from self-employment (as defined in sec-
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tion 1402), wages (as defined in section 
3121(a) or 3401(a)), and taxable income 
from a farming business (as defined in sec-
tion 236A(e)(4)) for the period reported on 
the return. 
‘‘(vi) The total income tax of such 
taxpayer. 
‘‘(vii) Total number of exemptions 
claimed, or total number of individuals and 
dependents claimed, as applicable, on the 
return. 
‘‘(viii) Number of children with re-
spect to which tax credits under section 24 
are claimed on the return. 
‘‘(ix) Amount of any credit claimed 
under section 25A for the taxable year. 
‘‘(x) Amount of individual retirement 
account distributions not included in ad-
justed gross income for the taxable year. 
‘‘(xi) Amount of individual retirement 
account contributions and payments to 
self-employed SEP, Keogh, and other 
qualified plans which were deducted from 
income for the taxable year. 
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‘‘(xii) The amount of tax-exempt in-
terest. 
‘‘(xiii) Amounts from retirement pen-
sions and annuities not included in ad-
justed gross income for the taxable year. 
‘‘(xiv) If applicable, the fact that 
there is no return filed for such taxpayer 
for the applicable year. 
‘‘(C) RESTRICTION ON USE OF DISCLOSED 
INFORMATION.— 
‘‘(i) IN
GENERAL.—Return informa-
tion disclosed under subparagraphs (A) 
and (B) may be used by officers, employ-
ees, and contractors of the Department of 
Education, as specifically authorized and 
designated by the Secretary of Education, 
only for the purposes and to the extent 
necessary described in such subparagraphs 
and for mitigating risks (as defined in 
clause (ii)) relating to the programs de-
scribed in such subparagraphs. 
‘‘(ii) MITIGATING
RISKS.—For pur-
poses of this subparagraph, the term ‘miti-
gating risks’ means, with respect to the 
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programs described in subparagraphs (A) 
and (B)— 
‘‘(I) analyzing or estimating costs 
associated with potential changes to 
the need-analysis formula, 
‘‘(II) oversight activities by the 
Office of Inspector General of the De-
partment of Education as authorized 
by the Inspector General Act of 1978, 
as amended, 
‘‘(III) 
developing 
or 
admin-
istering statistical models that inform 
support to populations of Federal stu-
dent loan borrowers who are at risk of 
default or delinquency, 
‘‘(IV) reducing the net cost of 
improper payments to Federal finan-
cial aid recipients, and 
‘‘(V) producing aggregate statis-
tics for reporting, research, or con-
sumer information on the performance 
of programs or institutions of higher 
education participating in the pro-
grams under title IV of the Higher 
Education Act of 1965. 
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Such term does not include the conduct of 
criminal investigations or prosecutions. 
‘‘(iii) REDISCLOSURE
TO
INSTITU-
TIONS
OF
HIGHER
EDUCATION, 
STATE 
HIGHER EDUCATION AGENCIES, AND DES-
IGNATED SCHOLARSHIP ORGANIZATIONS.— 
The Secretary of Education, and officers, 
employees, and contractors of the Depart-
ment of Education, may disclose return in-
formation received under subparagraph 
(B), solely for the use in the application, 
award, and administration of Federal stu-
dent financial aid, State aid, or aid award-
ed by eligible institutions or such entities 
as the Secretary of Education may des-
ignate, to the following persons: 
‘‘(I) An institution of higher edu-
cation with which the Secretary of 
Education has an agreement under 
subpart 1 of part A, or part D or E, 
of title IV of the Higher Education 
Act of 1965. 
‘‘(II) A State higher education 
agency. 
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‘‘(III) A scholarship organization 
which is designated by the Secretary 
of Education as of the date of the en-
actment of the Student Aid Sim-
plification Act as an organization eli-
gible to receive the information pro-
vided under this clause. 
The preceding sentence shall only apply to 
the extent that the taxpayer with respect 
to whom the return information relates 
provides consent for such disclosure to the 
Secretary of Education as part of the ap-
plication for Federal student financial aid 
under title IV of the Higher Education Act 
of 1965. 
‘‘(D) 
REQUIRED
NOTIFICATION
PERI-
ODS.— 
‘‘(i) NOTIFICATION
TO
CONGRESS.— 
The Secretary and the Secretary of Edu-
cation shall issue joint notifications to the 
Committees on Finance and Health, Edu-
cation, Labor, and Pensions of the Senate 
and the Committees on Ways and Means 
and Education and Labor of the House of 
Representatives not less than 120 days 
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prior to the first disclosure of any type of 
return information under subparagraph 
(A)(vii) or (B)(xv) with respect to which 
such a notification has not been previously 
made. 
‘‘(ii) 
PUBLIC
NOTICE
AND
COM-
MENT.—There shall be a public notice and 
comment period beginning not less than 60 
days prior to the first disclosure of any 
type of return information under subpara-
graph (A)(vii) or (B)(xv) with respect to 
which such a notification has not been pre-
viously made, subsequent to the period al-
lotted for Congressional comment under 
clause (i). 
‘‘(E) NOTIFICATION OF TAXPAYERS.—The 
Secretary of Education may not submit a writ-
ten request under this paragraph with respect 
to any taxpayer unless such Secretary has ad-
vised such taxpayer that such Secretary has the 
authority to request that the Internal Revenue 
Service disclose under this section the tax re-
turn information of such taxpayer, and of par-
ents and spouses who sign an application or re-
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quest or a Master Promissory Note on behalf of 
such taxpayer. 
‘‘(F) ADDITIONAL
RESTRICTION
ON
DIS-
CLOSURE TO CONTRACTORS.—For purposes of 
this paragraph, the Secretary shall not consider 
any contractors to be specifically authorized 
and designated by the Secretary of Education 
with respect to a disclosure unless the Secretary 
of Education finds that no officer or employee 
can carry out the purpose for which such disclo-
sure is requested.’’. 
(b) CONFIDENTIALITY OF RETURN INFORMATION.— 
Section 6103(a)(3) of such Code is amended by inserting 
‘‘, (13)(A), (13)(B)’’ after ‘‘(12)’’. 
(c) 
CONFORMING
AMENDMENTS.—Section 
6103(p)(4) of such Code is amended— 
(1) by inserting ‘‘(A), (13)(B)’’ after ‘‘(13)’’ 
each place it occurs, and 
(2) by inserting ‘‘, (13)(A), (13)(B)’’ after 
‘‘(l)(10)’’ each place it occurs. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disclosures made under section 
6103(l)(13) of the Internal Revenue Code of 1986 (as 
amended by this section) after the date of the enactment 
of this Act. 
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SEC. 3. REPORTS ON IMPLEMENTATION. 
(a) IN GENERAL.—Not later than each specified 
date, the Secretary of Education and the Secretary of the 
Treasury shall issue joint reports to the Committees on 
Health, Education, Labor, and Pensions and Finance of 
the Senate and the Committees on Education and Labor 
and Ways and Means of the House of Representatives re-
garding the amendments made by section 2. 
(b) SPECIFIED DATE DEFINED.—For purposes of 
subsection (a), the term ‘‘specified date’’ means— 
(1) the date that is 90 days after the date of 
the enactment of this Act, 
(2) the date that is 120 days after the first day 
that the disclosure process established under section 
6103(l)(13) of the Internal Revenue Code of 1986, 
as amended by section 2, is operational, and 
(3) the date that is 1 year after the report date 
described in paragraph (2). 
Æ 
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