Background. Each year, on an IRS Form 1098-T, colleges, universities, vocational schools and other postsecondary educational institutions must report to the IRS and each student the amount of tuition and related expenses billed to or received from the student for the previous year. The Form 1098-T must include the student’s correct taxpayer identification number. Penalties are assessed against an educational institution that submits a Form 1098-T with a missing or incorrect taxpayer identification number.
Due Date. 2015 Forms 1098-T are due by February 29, 2016 (or March 31, 2016 if filed electronically).
Old News. In August of 2015, the IRS announced that it would waive the penalties assessed against an educational institution for 2015 Forms 1098-T that were filed with an incorrect or missing taxpayer identification number if the institution certified that it properly requested the student’s taxpayer identification number.
New News. This month, the IRS announced that it would waive the penalties assessed against an educational institution for 2015 Forms 1098-T that were filed with an incorrect or missing taxpayer identification number without receiving the required certification that the institution properly requested the student’s taxpayer identification number. The reason for the change? The IRS was unable to make the necessary changes to the 2015 Form 1098-T to account for the required certification.