IRS Extends Reporting Requirement to Year 2000

The U.S. Treasury Department and the Internal Revenue Service (IRS) recently issued notice 99-37 announcing that eligible educational institutions and certain persons who receive payments of interest on qualified student loans are required to report the same information for year 2000 as was required for years 1998 and 1999.  Although final regulations regarding this notice will not be issued before 2000, the current reporting requirements remain in effect until regulations are finalized.

Section 6050S of the Internal Revenue Code requires eligible institutions to file information returns with the IRS to assist taxpayers and the IRS in determining the Hope Scholarship Credit and the Lifetime Learning Credit that taxpayers may claim under Section 25A. Institutions are also required to furnish a corresponding statement to each individual named on the information return. Section 6050S also requires certain persons who receive payments of student loan interest to file information returns to assist taxpayers and the IRS in determining the amount of student loan interest that taxpayers may deduct.  A corresponding statement must also be sent to each individual named on the information return.

For year 2000, eligible educational institutions will be required to file Forms 1098-T, Tuition Payments Statement.  Persons who receive payments of interest will be required to file Form 1098-E, Student Loan Interest Statement.  Forms 1098-T and E must be filed by February 28, 2001.

Questions regarding this IRS notice may be directed to Donna Welch of the Office of the Assistant Chief Counsel, Income Tax and Accounting Division, at (202) 622-4910.  A copy of the notice can be found on the U.S. Treasury Department's web site at http://irs.ustreas.gov.  If you are unable to access this web site and would like a copy of the notice, please contact Lynda Reid at (801) 321-7211.  Questions concerning this notice may be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail at cjudd@utahsbr.edu.