IRS Data Retrieval Tool

  

Last spring, the Department of Education and the IRS took the tool offline, as a result of concerns over identity theft. Although the DRT will be unavailable for the remainder of the 2017-18 FAFSA application year.  For the 2018-19 FAFSA application year, the IRS DRT is available. 

In order to better protect financial aid applicants’ information, starting this year the Department of Education has announced the DRT will 'limit the information that displays to the applicant in order to enhance the security and privacy of sensitive personal data transferred to the FAFSA from the IRS.' Sensitive data, such as adjusted gross income, will not be displayed to the applicants.


We are no longer able to accept paper copies of your 1040 for verification purposes. We need for you to provide your tax information either through the IRS Data Retrieval Tool or through a copy of your IRS Tax Return Transcript. We strongly encourage the use of the IRS Data Retrieval process for all students who are filing a FAFSA.  

Additionally, students or parents who filed their tax returns electronically within the last three weeks, or through the mail within the last eleven weeks, might need to either enter their tax return information manually and/or return to the FAFSA On The Web program to transfer their tax return information into the FAFSA, as the tax return information might not yet be available for transfer from the IRS.  We have included a helpful video below.

Certain tax filers may not be able to use the IRS Data Retrieval Tool.  See "Who Cannot Use the DRT" below.  For those students we will need a copy of the IRS Tax Return Transcript.  The IRS Tax Return Transcript is not a photocopy of your 1040.  You can request an IRS Tax Return Transcript from the IRS Website.  The transcript will be mailed to your home and once you receive it, be sure to write the student's name and William & Mary Id # at the top of the page before you send it in to us.  It can take up to two weeks to obtain a tax transcript, so please do so as soon as possible.  We will not reduce the aid you will be receiving due to IRS delays.

Who CAN Use the IRS Data Retrieval Tool?
  • You have successfully submitted a Federal tax return with the IRS
  • You have a valid social security number (SSN)
  • You have separate FSA User ID's and passwords for both parent and student obtained from the FSAID website

{{youtube:medium:center|skkr_fgduoQ, Using the IRS Data Retrieval Tool}}

2018–19 Changes to the FAFSA IRS DRT User Experience

To enhance the security and privacy of the sensitive personal data transferred into the FAFSA form from the IRS, the new solution will encrypt the applicant’s or parent’s information and hide it from view on both the IRS DRT website and on the FAFSA web pages.

FAFSA applicants and parents who are eligible to use the IRS DRT will still be provided the option to link to the IRS and retrieve their tax information from the IRS. Once on the IRS DRT website, applicants and parents will proceed through the usual authentication process and once authenticated, will be provided a list of all the possible fields from a tax return that could transfer back into the FAFSA form. However, applicants and parents will not be able to view their tax return information on the IRS DRT web page. If an applicant or parent agrees to transfer his/her data back into the FAFSA form, the applicant or parent will also not be able to view the transferred income and tax information on the FAFSA web pages. Instead of the transferred information, applicants and parents will see the words “Transferred from the IRS” in the data entry fields throughout the online FAFSA form and on the Student Aid Report (SAR). The transferred information will still be provided on ISIRs that are sent to schools and state grant agencies. Because the transferred information is not displayed, applicants and parents will be unable to make any corrections to the IRS DRT transferred items on the FAFSA form before or after submission. Institutions will continue to be able to make any necessary corrections.

Who CANNOT Use the IRS Data Retrieval Tool?
  • Your marital status changes after the end of the tax year, e.g. you completed the 2015 Federal 1040 as married but you are now divorced.
  • You filing status is "Married Filing Separately"
  • You are Married and filed "Head of Household"
  • You filed a foreign tax return
  • You filed a Puerto Rican tax return
  • You filed your taxes within the last 2 - 10 weeks
  • You have an outstanding balance/owe taxes to the IRS
  • You are a taxpayer who files using a Tax ID Number (TIN) rather than a Social Security Number (SSN)
Important Note for Amended Tax Returns: 

The FAFSA On The Web IRS Data Retrieval Process will only transfer information from an original tax return and Not from an amended tax return.  Similarly, the IRS Tax Return Transcript only includes information from the original tax return.  You may use the IRS DRT or if you prefer submit an IRS Tax Return Transcript along with your IRS 1040X Form.  The 1040x must be obtained and submitted to the school for review to be completed when an amended tax return is filed for the requested tax year.

Important Note for Consideration of Rollover Funds:

The FAFSA On The Web IRS Data Retrieval Process will transfer all information from the original tax return, this includes any rollover funds that may be inflating the reported Adjusted Gross Income.  If an amount greater than $0 is transferred from the IRS into the Untaxed Portions of IRA Distributions field or the Untaxed Portions of Pensions field in the FAFSA form, the applicant or parent will be required to answer a new question about whether or not that amount includes a rollover. If the applicant or parent answers “yes,” he/she will be required to provide the amount of the rollover in a new entry field. The FAFSA will then subtract the user-reported rollover amount from the amount of the IRA or Pension distribution that was transferred from the IRS, and the result will be used in the calculation of the applicant’s expected family contribution (EFC).

Individuals Who Were Victims of IRS Tax-Related Identity Theft:

An individual who was the victim of IRS tax-related identity theft must provide the following:

  • A Tax Return DataBase View (TRDBV) transcript obtained from the IRS, or any other IRS tax transcript(s) that includes all of the income and tax information required to be verified.
  • A statement signed and dated by the tax filer indicating that he or she was a victim of IRS tax-related identity theft and that the IRS is aware of the tax-related identity theft.
For Individuals who Filed Non-IRS (US) Income Tax Returns:
  • A tax filer who filed an income tax return with Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico and the U.S. Virgin Islands may provide a signed copy of his or her income tax return that was filed with the relevant tax authority. If we question the accuracy of the signed copy of the income tax return, the tax filer must provide us with a copy of the tax account information issued by the relevant tax authority  before verification can be completed. Please note that these forms must be translated and funds converted (using the present conversion rate) if necessary, providing the conversion rate you used. 
  • A tax filer who filed an income tax return with the tax authority for American Samoa must provide a copy of his or her tax account information.
  • A tax filer who filed an income tax return with tax authorities not mentioned above, i.e. a foreign tax authority, and who indicates that he or she is unable to obtain the tax account information free of charge, must provided documentation that the tax authority charges a fee to obtain that information, along with a signed copy of his or her income tax return that was filed with the relevant tax authority. Please note that these forms must be translated and funds converted (using the present conversion rate) if necessary, providing the conversion rate you used. 

Please feel free to contact our office if you have any questions: [[aid,Financial Aid]] or 757-221-2420.