From: Brian T. Kaspar (Brian.T.Kaspar@hofstra.edu)
Date: Wed Nov 20 2002 - 16:49:09 EST
>>> Doug Ackley <RDA@andy.lan.ksu.edu> 11/20/02 04:03PM >>>
In my opinion, you should go ahead and include any tuition
assessed for the Fall 2002 or Spring 2003 semester regardless of
whether it has been billed or not. Nowhere on the 1098-T will the
IRS be able to tell if a student/parent actually paid anything toward
the tuition (except through scholarships or grants....and even then
the IRS won't know if scholarships or grants were all for one
semester or spread over all semesters). Therefore, the taxpayer is
going to have to report to IRS amount paid out of pocket for
tuition/fees and the only way the IRS is going to be able to verify
that is through an audit (or we schools may be busy answering IRS
inquiries).
For example, if you report tuition/fees billed on 1098-T as $5,000
and Scholarships/Grants as $5,000, how will feds know how the
scholarships were applied? Could the $5,000 in scholarships have
been awarded all in the Fall 2002 semester and the student paid
his/her own tuition in the Spring 2002 semester? If so, the
student/parent may indicate on tax return that they paid, let's say,
$2000 toward tuition and fees, which they did in the Spring 2002
Semester. But how is IRS going to verify that info? Is IRS going to
see that the student has more Scholarships and Grants than total
tuition billed and not allow any tax credits even though
student/parents paid $2000 out of pocket in the Spring 2000
semester?
Or a much simpler case, you report on 1098-T that tuition billed
was $5,000, no scholarships/grants. The taxpayer reports $5,000
paid for tuition/fees out of pocket.....how will IRS know based on
what you sent them on 1098-T, whether or not the taxpayer
actually did pay?
So, back to your original question......I would go ahead and report
the amount of tuition/fees assesed on 1098-T because the
student/parent may pay you without being billed and if you have not
included that amount billed on the 1098-T, the student/parent will
be upset. If you report the assessed but unbilled tuition and the
student does not pay by the end of CY2002, no harm done.
We are waiting until next year to put any figures on our 1098-T
forms. There is still a lot to learn from others experiences and we
hope those of you that do report figures will share those
experiences with us in the coming year.
Best of luck to all of us!
Date sent: Wed, 20 Nov 2002 11:57:30 -0500
To: bursar-l@virginia.edu
From: Bruce Forinash <baforina@gw.fis.ncsu.edu>
Subject: 1098-T reporting for 2002
>
> Are there any brave souls out there that are considering early adoption
> of the new IRS rules for the 1098-T?
>
> We plan to adopt the recently released requirements for 2002, and
> report amounts Billed rather than payments received. One of the
> decisions we must make is whether a charge is "Billed" (to use the IRS
> term) when it is presented to the student on a physical bill, or when
> the transaction occurs and is posted to the student account. For
> example, December registration activity will show on student accounts in
> December (in our records and on the web), but not actually be billed
> until January. Which reporting period should it show in?
>
> I don't think this is a trick question, and maybe I'm thinking about it
> too much, but I would appreciate any clarifying thoughts anyone would
> care to share.
>
> bruce
>
>
>
> ++++++++++++++++++++++++++++
> Bruce Forinash
> Director, University Cashier's Office
> NC State University
> 2005 Harris Hall
> Campus Box 7213
> Raleigh, NC 27695
> 919.515.6010 (office)
> 919.515.1164 (fax)
> bruce_forinash@ncsu.edu
>
R. Douglas Ackley
Assistant Controller for Cashiering and Student Loans
211 Anderson Hall
Kansas State University
Manhattan, KS 66506
(785) 532-1820
email: rda@andy.lan.ksu.edu
FAX: (785) 532-5632
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