The steady stream of news emerging from the nation’s capital can be overwhelming. NACUBO highlights key actions and provides the status of top higher education business concerns.
ED Changes Gainful Employment Regulations
On July 1, The Department of Education rescinded the 2014 gainful employment (GE) regulations, which were designed to protect students from enrolling in programs that consistently failed to prepare graduates for the job market. While the rescission goes into effect July 1, 2020, ED has allowed for early implementation of the change. Schools adopting the early implementation will not be required to report GE data for the 2018-19 award year and will not be required to include their GE data in promotional materials or disclose the data to prospective students. Otherwise, institutions should continue to provide the disclosures until July 1, 2020.
Truncated TINs Permitted on Employee Copies of Form W-2
The IRS has issued final regulations that allow employers to shorten Social Security numbers on employee copies of Form W-2. The final rules, aimed at helping employers prevent identity theft, go into effect for 2020 Forms W-2 that will be filed in 2021.
FSA Seeks Pilot Schools for Payment Vehicle Program
The Department of Education’s Office of Federal Student Aid posted a notice inviting colleges and universities to take part in a pilot program as the agency considers implementing a fee-free banking product for Title IV-eligible students. Schools must indicate their interest in participating in the pilot by July 24.
Treasury and IRS Propose Regulations on Endowment Excise Tax
New guidance explains how certain colleges and universities should apply the excise tax on endowments enacted as part of the Tax Cuts and Jobs Act.
New OMB Policy Requires Title IV Privacy and Data Security Audit Checks
The long-awaited Office of Management and Budget 2019 Compliance Supplement has been released and features a new privacy and data security audit objective for Title IV program audits.
Higher Ed Community Calls for ‘Kiddie Tax’ Fix
The higher education community, in a letter led by the American Council on Education, has again urged Congress to fix the tax code glitch that resulted in much higher tax bills for some low- and middle-income scholarship recipients. The fix for this “kiddie tax” issue is tied up in a larger piece of retirement legislation that has been contentious for many lawmakers.
Support Expressed for Dreamers Amid Supreme Court Decision
Just prior to the Supreme Court’s decision to review the Trump administration’s elimination of the Deferred Action for Childhood Arrival program, the higher education community called on Congress to pass protections for Dreamers. The high court’s acceptance of the case adds pressure for Congress to act before a judicial decision is announced next year.
NACUBO Encourages 179D Extension and Expansion
NACUBO recently submitted a letter to the Senate Finance Committee’s Cost Recovery Taskforce, which is charged with considering the extension of the 179D Commercial Buildings Energy Efficiency Tax Deduction. NACUBO encouraged lawmakers to extend the deduction and to expand eligibility to nonprofit organizations, including higher education institutions. The deduction has been expired since December 31, 2017.
What Not to Miss in Austin
If you are attending the upcoming NACUBO 2019 Annual Meeting, don’t miss presentations from NACUBO’s Policy and Research team. In addition to a Washington Update on Sunday, July 14, the team will provide tax and legal updates and 15-minute “Hot Takes” in the Expo Hall LAB. Meet the team during Ask the Experts opportunities, which will also take place in the Expo Hall.
What Did I Miss in Washington? June 11-24, 2019