Verification is a process in which information on a student's Free Application for Federal Student Aid (FAFSA) is reviewed for accuracy and helps the College to accurately and fairly determine the types and amounts of financial aid that a student is eligible to receive.
If an applicant is selected for verification by the U.S. Department of Education, or by Charter Oak, additional documentation will be required to validate data reported on the FAFSA which includes income tax information. Please note that the Office of Financial Aid has the legal authority to request additional information and documentation to authenticate information reported on the FAFSA.
Students and parents are asked not to submit tax information or other documentation unless notified by either Inceptia or the Office of Financial Aid to do so.
IRS Data Retrieval Tool for Tax Filers:
The IRS DRT is available for students to use with their FAFSA applications. Additional security and privacy protections have been added to address identity theft concerns. Due to these concerns, tax information transferred from the IRS onto the FAFSA application will not be visible to applicants. Students will see "Transferred from the IRS" in the appropriate fields as shown below:
Tax Return Transcript Ordering Information:
Moving to better protect taxpayer data, the Internal Revenue Service has implemented a new format for tax return transcripts that will redact personally identifiable information (PII). Identifying information, including names, addresses, SSN’s, will now be partially redacted from the tax return transcript, but all money amounts will be visible.
Based on the limited information that will now be displayed on the tax return transcript, students are required to reference their name and student id on their tax return transcript before sending it to the Office of Financial Aid. This is the only way that our office will be able to match the tax transcript to the student’s financial aid record.
Students who do not want their financial aid delayed are encouraged to use the IRS Data Retrieval Tool (DRT) to transfer their tax data onto their FAFSA application. Students who cannot use the IRS DRT, or choose not to use the IRS DRT, will be responsible for providing their full name and student id on all transcripts (student/spouse/parent) submitted to the Office of Financial Aid.
Amended Tax Return Information:
Applicants who change IRS data (by filing an amended tax return) must provide the following tax information to the Office of Financial Aid:
A signed copy of Form 1040X* for the applicable 2018 (FAFSA cycle 20-21) or 2019 (FAFSA cycle 21-22) tax year. Please note that amending a tax return is a two part process. The first step is to prepare a new tax return using Form 1040. The next step is to report the amended tax information on Form 1040 to the appropriate line item on Form 1040X. The Office of Financial Aid will request a copy of both the 1040X and corrected Form 1040.
Amended tax filers who did not use the IRS Data Retrieval Tool, with all the informaton from the original tax return, must also provide one the of the following:
A signed copy of the original tax return filed with the IRS 2018 tax return (FAFSA cycle 20-21) or 2019 tax return (FAFSA cycle 21-22), or
An IRS tax return transcript for the applicable 2018 or 2019 tax year.
* Please note that the Office of Financial Aid may require a student to submit an IRS Record of Account to validate information on Form 1040X.
Tax Filing Extensions:
Applicants who have been granted a tax filing extension beyound the automatic six-month extension, must provide the following tax information to the Office of Financial Aid:
A copy of IRS Form 4868, "Application for Automatic Extension of Time to File U.S. Individual Income Tax Return," that was filed with the IRS for the applicable 2018 (20-21 FAFSA cycle) or 2019 (21-22 FAFSA cycle) tax year; and
- A copy of the IRS's additional extension of filing time beyond the automatic six-month extension for the applicable 2018 or 2019 tax year, and
- Confirmation of nonfiling from the IRS for the applicable tax year. The 2018 nonfiler must be dated on or after October 1, 2019 and the 2019 nonfiler must be dated on or before October 1, 2020, and
- A copy of IRS Form W–2 for each source of employment income received for the applicable 2018 or 2019 tax year; and
- If self-employed, a signed statement certifying the amount of the individual’s Adjusted Gross Income (AGI) and the U.S. income tax paid for tax year 2018 or tax year 2019.
* Please note that it is the policy of the College to require those with a filing extension to submit a tax transcript for the applicable tax year after it has been filed, or use the IRS Data Retrieval Tool so that tax information can be verified by the Office of Financial Aid. Please note that this may change the dollar amounts of grants and/or loan amounts that were originally offered.
Applicants who are non-tax filers must provide the following information to the Office of Financial Aid:
Copies of applicable 2018 (20-21 FAFSA cyle) or 2019 (FAFSA cycle 21-22) IRS W-2 Forms for each source of income from work; and
IRS verification on Non-Filing. Form must be dated on or after October 1, 2019 for tax year 2018 and form must be dated on or after October 1, 2020 for tax year 2019.
*Additional documentation may also be requested by the Office of Financial Aid to verify all sources of untaxed income and benefits such as: child support received, worker's compensation, disability, and money paid or received on a parent's or student's behalf.
Victims of Identity Theft:
Victims of tax related identity theft who are unable to get a tax return transcript are required to submit a Tax Return DataBase View (TRDBV) transcript from the IRS. Additionally, students must provide to the Office of Financial Aid a signed and dated statement indicating that they were victims of tax related identity theft and that the IRS has been made aware of it. Students who are victims of IRS identity theft can contact the IRS's Identity Protection Specialized Unit by calling (800) 908-4490. After the unit authenticates the tax filers identity, the student can request the IRS TRDBV transcript.
Additional Requests for Information:
Additional documentation may be requested by the Office of Financial Aid for verification of untaxed income and benefits (even if income is excluded from the FAFSA). This may include, but is not limited to, collection of W-2 forms, child support payments received, payments made to tax-deferred pension and savings plans, and receipt of benefits from social services programs.
The Office of Financial Aid is responsible for resolving information that it believes to be discrepant or inaccurate and may request supporting documentation to clear data conflicts. Students or their parents may be asked to verifying marital status by providing copies of separation agreements or divorce decrees. If confirmation of state of legal residency is required, students may be asked to provide an unexpired driver's license or unexpired state issued ID card. Student's may also be asked to provide high school completion status and bachelor's degree completion. If warranted, the Office of Financial aid may ask a student to submit missing college and/or university transcripts not previously received by the College
*If conflicting information is discovered after disbursing aid, Charter Oak is required to reconcile the differences and recalculate the student's EFC. If there is an over award, the student will be required to repay any excess funds. If a student is no longer enrolled, they will owe a Title IV overpayment to the U.S. Department of Education. In these cases, Charter Oak will notify the U.S. Department of Education of the over payment.