IRS Simplifies Electronic Delivery of Forms 1098-T

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October 21, 2010

Colleges and universities will now be permitted to give students the option of receiving the Form 1098-T electronically, as part of a broader consent to accept electronic communications, according to the 2010 report of the Information Reporting Program Advisory Committee (IRPAC) --- a group of representatives from the taxpayer/tax reporting community selected by IRS to advise the Service on matters related to reporting.

At the recommendation of the Ad Hoc Subgroup of IRPAC, IRS will allow colleges and universities to present students with the optionto receive Forms 1098-T electronically as part of "a global consent to do business electronically, combining consent for electronic delivery of Form 1098-T along with other institutional student business functions such as admissions, registration, billings, and direct deposit. " This will be articulated in the IRS Frequently Asked Questions related to Form 1098-T, Tuition Statement. Refer to page 16 of the Appendix section of the IRPAC report for the relevant Q&A.

Following up on another IRPAC initiative, the IRS is moving forward on the development of plain language, Web-based content addressing nonresident alien taxation, withholding, and reporting. Work is underway and IRS plans to roll out content in stages. The information will appear in a section of the irs.gov Web site entitled, "Taxation of Aliens by Visa Type and Immigration Status."

NACUBO sponsored the nomination and appointment of Joan Hagen, chief accountant and managing director, Indiana University, who is finishing up her second of a three-year term representing colleges and universities on IRPAC. Joan and her colleagues on the Ad Hoc Subgroup of IRPAC have been instrumental in recommending these efforts and working with the IRS on these two topics impacting higher education institutions.