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ECSI Regulation Bulletin

Working with Federal Student Loans also means working within the Federal Regulations that accompany them. As your servicer, ECSI feels that it is our duty to keep track of these regulations for you, making sure to keep your institution in compliance with all mandatory federal regulations.

Regulation Spotlight: 1098-T's

Problem:

The Taxpayer Relief Act of 1997 added section 25A to the Internal Revenue Code to provide the Hope Scholarship Credit & the Lifetime Learning Credit to allow taxpayers to claim a non-refundable credit against their federal income taxes for certain post-secondary educational expenses. Due to this, education institutions are now mandated by Internal Revenue Code 6050S to file and provide information returns (1098-T’s) to assist taxpayers and the IRS in determining the education credit that can be claimed.

Regulation:

Internal Revenue Code: Title 26, Section 6050S states. . .

(a) In general, any person

  1. which is an eligible educational institution which enrolls any individual for any academic period;
  2. which is engaged in a trade or business of making payments to any individual under an insurance arrangement as reimbursements or refunds (or similar amounts) of qualified tuition and related expenses; or
  3. except as provided in regulations, which is engaged in a trade or business and, in the course of which, receives from any individual interest aggregating $600 or more for any calendar year on one or more qualified education loans,

- shall make the return described in subsection (b) with respect to the individual at such time as the Secretary may by regulations prescribe.

(b) Form and manner of returns

A return is described in this subsection if such return-

  1. is in such form as the Secretary may prescribe, and
  2. contains-
    1. the name, address, and TIN of any individual-
      1. who is or has been enrolled at the institution and with respect to whom transactions described in subparagraph
    2. are made during the calendar year, or
      1. with respect to whom payments described in subsection (a)(2) or (a)(3) were made or received,

Solution:

Flexibility. ECSI is more than happy to accept your files in any layout or format (including your existing vendor’s requirements). This type of flexible service ensures that as little work as possible is placed on you as we streamline your 1098T processes. Stop spending long days stuffing envelopes or getting frustrated with other vendors during “T” season. Let ECSI service your 1098-T’s and you will never be charged any Set-Up, Renewal, or Maintenance Fees of any kind. (Please click on the link to see even more ways how ECSI services your 1098-T’s: http://ecsi.net/prospects2/ad_1098t.pdf).

For more information, on this or any other regulation, please contact us.