How Do We Know an Individual Would File a Tax Return With a Tax Authority Other Than the IRS?

Award Year: 2024-25 KA-36872 Helpfulness Rating 1,498 page views

This guidance is specific to the 2024-25 award year and later.

This AskRegs Q&A was updated on March 4, 2024 to add clarity.

There is no perfect answer here. For a nontax filer selected for verification, the verification requirement in the September 19, 2023 Federal Register states:

 

 

 

 

 

 

It is NASFAA’s understanding that the financial aid administrator (FAA) will know this if the student or student’s spouse answers “No” to the 1040/1040-NR question on the FAFSA and answers “Yes” to the foreign income question on the FAFSA—identified by a value of “1” in the ISIR field, “Filed non-U.S. tax return.” The school might also find out during a communication with the student or parent.

The FAA would know if the parent fills in the foreign country oval in the first column on the parent section of the FAFSA, which results in a value of “3” in the ISIR data field “Filed non-U.S. tax return,” or if the FAA otherwise finds out from the student or parent. The reported state of legal residence on the FAFSA is also a clue that they would file a non-IRS tax return.

Of course, the student, spouse, or parent could self-identify as someone who would file a tax return with a tax authority other than the IRS.

If NASFAA receives additional clarification from the U.S. Department of Education (ED), we will update this AskRegs Q&A.

AskRegs Q&As represent NASFAA's understanding of regulatory and compliance issues. They are FOR INTERNAL USE ONLY. While NASFAA believes AskRegs Q&As are accurate and factual, they have not been reviewed or approved by the U.S. Department of Education (ED). If you should need written confirmation of AskRegs information for audit or program review purposes, please contact your ED School Participation Division. NASFAA shall not be liable for technical or editorial errors or omissions contained herein; nor for incidental or consequential damages resulting from the furnishing, performance, or use of this material.