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

Award Year: 2024-25 KA-36910 Helpfulness Rating 538 page views

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

According to the September 19, 2023 Federal Register, whether you need to collect a verification of nonfiling for a nontax filer depends on whether the nonfiler would file a tax return with the Internal Revenue Service (IRS) or with a tax authority other than the IRS. A verification of nonfiling is not required for someone who would file an IRS tax return if they were to file one. On the other hand, a verification of nonfiling is required for someone who would file a tax return with a tax authority other than the IRS if they were to file one.

So, how do you know if they would file a tax return with a tax authority other than the IRS? It is NASFAA's understanding that you will know this if the nonfiling student or student spouse answers "Yes" to the foreign income question. The school might also find out during a communication with the student.

And, you would know if the parent or parent's spouse fills in the foreign country oval in the first column on the parent section of the FAFSA, or if you otherwise find 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.

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