What Corrections Are Required When Someone Files a Tax Return With Both the IRS and a U.S. Territory?
Award Year: 2024-25 KA-36916 Helpfulness Rating 372 page viewsThis guidance is specific to the 2024-25 award year and later.
For the 2024-25 award year, when a FAFSA contributor (student, spouse, parent) files a tax return with both the Internal Revenue Service (IRS) and the tax authority of a U.S. territory (Puerto Rico, Guam, American Samoa, U.S. Virgin Islands, and Commonwealth of the Northern Mariana Islands), the financial aid administrator (FAA) must correct the information to reflect the U.S. territory tax return. These corrections must be made regardless of whether the student was selected for verification.
See the December 19, 2023 Electronic Announcement (GENERAL-23-118) for information and instructions on how to proceed.
NASFAA is unaware of any flag or indicator that would alert the FAA when a contributor files both a U.S. and territory tax return, but this will be apparent if the contributor answers "Yes" to both the 1040 and the Puerto Rico/another U.S. territory questions:
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