Will ED Or NASFAA Be Creating A Template For Collecting Consent To Share Federal Tax Information?

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This guidance is not award-year-specific and applies across award years.

No. The U.S. Department of Education (ED) has indicated to NASFAA that it has no plans to create a template for collecting written consent to share federal tax information (FTI). Likewise, because of the potential liabilities, NASFAA also will not be creating such a template because the consent needs to be specific to each individual and the purpose of the disclosure.

When the institution creates its own written consent, it must include all of the items outlined in 20 USC 1098h(c)(4):

"The term "written consent" means a separate, written document that is signed and dated (which may include by electronic format) by an applicant, which-

(i) indicates that the information being disclosed includes return information [FTI] disclosed under section 6103(l)(13) of title 26 with respect to the applicant;

(ii) states the purpose for which the information is being disclosed; and

(iii) states that the information may only be used for the specific purpose and no other purposes."

We encourage you to review these specifications and, if necessary, work with your school's legal counsel to come up with an appropriate practice for your institution to gather this information.

Please review the guidance issued during the 2023 Federal Student Aid (FSA) Training Conference, Session B10: Data Use and Considerations Under the FUTURE Act and FAFSA Simplification Act. See also AskRegs Knowledgebase Q&A, What Is Federal Tax Information (FTI)?

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.