Colleges and universities get additional penalty relief regarding Forms 1098-T (Student Tuition Statement).
Background. Each year, on an IRS Form 1098-T, colleges, universities, vocational schools and other post-secondary 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.
The Good News. In June of 2015 new tax legislation provided that, commencing with 2015, penalties would no longer be assessed against an educational institution for failing to include the student’s correct taxpayer identification number on the Form 1098-T if the institution certifies that it properly requested the student’s taxpayer identification number.
The Good News (x2). Last month, the IRS announced that it is waiving penalties assessed against an educational institution for Forms 1098-T that were filed with an incorrect or missing taxpayer identification number with respect to 2012, 2013 and 2014.