Td 9029

[4830-01-p]

Published December 19, 2002

DEPARTMENT OF THE TREASURY

Corrected February 7, 2003

Internal Revenue Service
26 CFR Parts 1, 301, and 602
[TD 9029]
RIN 1545-BA43
Information Reporting for Qualified Tuition and Related Expenses;
Magnetic Media Filing Requirements for Information Returns
AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Final regulations.

SUMMARY:

This document contains final regulations relating to the

information reporting requirements for qualified tuition and related
expenses under section 6050S of the Internal Revenue Code, including
rules prescribing when the required information returns must be filed
on magnetic media.

The final regulations reflect changes made to the

law by the Taxpayer Relief Act of 1997 and the amendments made by the
Internal Revenue Service Restructuring and Reform Act of 1998 and
Public Law 107-131.

These regulations provide guidance to eligible

educational institutions that enroll any individual for any academic
period.

These regulations also provide guidance to insurers that

make reimbursements or refunds of qualified tuition and related
expenses.
DATES: Effective Date: These regulations are effective December 19,
2002.

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Applicability Dates:

For dates of applicability, see §1.6050S-

1(f) and §301.6011-2(g)(3).
FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, Tonya

Christianson, (202) 622-4910; and concerning the magnetic media
filing specifications, waivers for filing on magnetic media, and
extensions of time, contact the IRS, Martinsburg Computing Center,
(304) 263-8700 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information contained in these final
regulations has been reviewed and approved by the Office of
Management and Budget in accordance with the Paperwork Reduction Act
of 1995 (44 U.S.C. 3507(d)) under control number 1545-1678.
Responses to this collection of information are mandatory.
An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it
displays a valid control number assigned by the Office of Management
and Budget.
The estimated reporting burden for the reporting in these
regulations is reflected on the burden for Form 1098-T.
Estimated total annual reporting burden for 2001 for Form
1098-T:

3,056,411 hours.

Estimated number of responses for 2001 for Form 1098-T as of

3
November 22, 2002:

20,376,075.

Estimated average annual burden hours per response for 2001 for
Form 1098-T:

9 minutes.

Comments concerning the accuracy of this burden and suggestions
for reducing this burden should be sent to the Internal Revenue
Service, Attn: IRS Reports Clearance Officer, W:CAR:MP:FP:S,
Washington, DC 20224, and to the Office of Management and Budget,
Attn: Desk Officer for the Department of the Treasury, Office of
Information and Regulatory Affairs, Washington, DC 20503.
Books or records relating to a collection of information must
be retained as long as their contents may become material in the
administration of any internal revenue law.

Generally, tax returns

and tax return information are confidential, as required by 26 U.S.C.
6103.
Background
This document contains amendments to the Income Tax Regulations
(26 CFR part 1) relating to the information reporting requirements
for qualified tuition and related expenses under section 6050S of the
Internal Revenue Code (Code) and amendments to the Procedure and
Administration Regulations (26 CFR part 301) relating to magnetic
media reporting.

The Taxpayer Relief Act of 1997 (Public Law 105-34

(111 Stat. 788) (TRA ‘97)) added section 6050S of the Code.

Section

6050S was amended by the Internal Revenue Service Restructuring and

4
Reform Act of 1998 (Public Law 105-206 (112 Stat. 685) (RRA ‘98)),
and Public Law 107-131 (115 Stat. 2410).

In general, section 6050S

requires any eligible educational institution (institution) to file
information returns and to furnish written information statements to
assist taxpayers and the Internal Revenue Service (IRS) in
determining the amount of qualified tuition and related expenses
(qualified expenses) for which an education tax credit is allowable
under section 25A (as well as other tax benefits for higher education
expenses).

See H.R. Conf. Rept. No. 599, 105th Cong., 2d Sess., pp.

319-320 (1998).
As provided by Public Law 107-131, for calendar years beginning
after December 31, 2002, institutions may elect to report either the
aggregate amount of payments received, or the aggregate amount
billed, for qualified expenses during the calendar year with respect
to individuals enrolled for any academic period.

Institutions must

report separately adjustments (i.e., refunds of payments or
reductions in charges) made during the calendar year to payments
received, or amounts billed, for qualified expenses that were
reported in a prior calendar year.

In addition, institutions must

report the aggregate amount of scholarships or grants received for an
individual’s costs of attendance that the institution administered
and processed during the calendar year.

Institutions must report

separately adjustments (i.e., refunds or reductions) made during the

5
calendar year to scholarships that were reported in a prior calendar
year.
In addition, section 6050S requires any person engaged in a
trade or business of making payments to any individual under an
insurance agreement as reimbursements or refunds of qualified
expenses (an insurer) to file information returns and to furnish
written information statements.
A notice of proposed rulemaking under section 6050S (REG105316-98) was published in the Federal Register (65 FR 37728) on
June 16, 2000 (the 2000 proposed regulations).

The 2000 proposed

regulations relating to the information reporting requirements for
institutions and insurers were withdrawn and a new notice of proposed
rulemaking (REG-161424-01) was published in the Federal Register (67
FR 20923) on April 29, 2002 (the 2002 proposed regulations).

No

request for a public hearing was received on the 2002 proposed
regulations.

The IRS received written and electronic comments

responding to the 2002 notice of proposed rulemaking.

After

consideration of all the comments, the 2002 proposed regulations are
adopted as amended by this Treasury decision.

The revisions are

discussed below.
Explanation of Provisions and Summary of Comments
1. Information Reporting Relating to Qualified Tuition and Related
Expenses

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A.

Required reporting and exceptions to reporting

(i) Reporting Based on Academic Year vs. Calendar Year
One commentator to the 2002 proposed regulations requested that
institutions be allowed to report financial data based on an academic
year, and not based on a calendar year.

Section 6050S requires

institutions to report on a calendar year in order to assist
taxpayers in calculating the education tax credit that is allowable
for qualified expenses paid during a calendar year.

Therefore, the

final regulations do not adopt this recommendation.
(ii) Exception for Noncredit Courses
The 2002 proposed regulations provide an exception to reporting
for any student who is enrolled during the calendar year only in
courses for which no academic credit is offered.

Several

commentators to the 2002 proposed regulations requested that if a
student is enrolled both in courses for which academic credit is
offered (e.g., courses in a postsecondary degree program) and courses
for which no academic credit is offered (e.g., courses in a
continuing education program), institutions should be required to
report only the courses for which academic credit is offered.

The

commentators suggested that the exception to reporting should be
based on the category of courses, not the category of students.

The

commentators explained that institutions maintain separate databases
for credit courses and noncredit courses and that it would create a

7
substantial hardship if institutions were required to report for both
credit courses and noncredit courses.

In response to these comments,

and because under section 25A and the regulations thereunder a
student enrolled in a postsecondary degree program is not eligible to
claim a Hope Scholarship Credit (and may not be eligible to claim a
Lifetime Learning Credit) for noncredit courses, the final
regulations adopt this recommendation.

Accordingly, the final

regulations provide that institutions are not required to report with
respect to courses for which no academic credit is offered by the
institution, even if the student is enrolled in a degree program.
(iii) No Exception for Small Amounts of Qualified Tuition and Related
Expenses
One commentator to the 2002 proposed regulations requested that
the regulations provide an exception to reporting for qualified
expenses of $100 or less.

The limited exceptions to required

reporting are based on the fact that certain categories of students
may not be eligible to claim the education tax credit and that
certain payments may not be taken into account in calculating the
amounts paid for qualified expenses for which an education tax credit
is allowable.

An exception to reporting for small amounts of

qualified expenses has no relationship to whether an education tax
credit is allowable for amounts paid for qualified expenses.
Therefore, the final regulations do not adopt this recommendation.
(iv) Exception for Students Whose Qualified Expenses Are Covered by

8
Formal Billing Arrangement
The 2002 proposed regulations provide an exception to reporting
for any student whose qualified expenses are paid by the student’s
employer through a formal billing arrangement under which the
employer’s employees attend the institution, the institution bills
only the employer, and the institution does not maintain a separate
account for any employee/student.

Several commentators to the 2002

proposed regulations requested that this exception be expanded to
include formal billing arrangements between institutions and other
third party payors, such as the Veterans’ Administration, U.S. Armed
Forces, and other governmental and private organizations.
Under section 25A and the regulations thereunder, a taxpayer
cannot claim the education tax credit for educational expenses paid
with amounts that are excludable from gross income.

Educational

expenses paid through a formal billing arrangement between an
institution and a governmental entity, such as the Veterans’
Administration, often are excludable from the gross income of the
individual student.

Therefore, the final regulations expand the

exception to cover formal billing arrangements between an institution
and a governmental entity under which the institution bills only the
governmental entity and does not maintain a separate account with
respect to any individual student.

In addition, the final

regulations authorize the Commissioner to designate additional types

9
of formal billing arrangements for which no reporting will be
required.

It is anticipated that any additional formal billing

arrangements designated by the Commissioner will be limited to
situations in which the individual students generally would not be
eligible to claim an education tax credit with respect to the
payments made by the institutional third party payor.
(v) Family Educational Rights and Privacy Act and Optional Reporting
The U.S. Department of Education has previously determined that
reporting under section 6050S does not violate the Family Educational
Rights and Privacy Act (FERPA) (20 U.S.C. section 1232g).

Several

commentators to the 2002 proposed regulations requested clarification
as to whether an institution that chooses to report on all students
under section 6050S, even if the regulations provide an exception to
required reporting, would violate FERPA.

After the 2002 proposed

regulations were issued, the Treasury Department asked the Department
of Education to consider whether its earlier determination would
extend to an institution that chooses to report on students otherwise
covered by an exception to required reporting.

The Department of

Education has recently determined that an institution will not
violate FERPA if it chooses to report information on all students in
accordance with section 6050S, even if the regulations provide an
exception to required reporting.
B.

Required information for institutions

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(i) Reporting Amounts Billed in One Year That Relate to an Academic
Period that Begins During the First Three Months of the Next Year
Several commentators to the 2002 proposed regulations requested
that the final regulations eliminate the requirement that
institutions indicate that amounts reported as billed in one calendar
year relate to qualified expenses for an academic period that begins
during the first three months of the next calendar year.

The

commentators explained that most institutions bill late in one
calendar year for the qualified expenses that relate to an academic
period that begins in the first three months of the next calendar
year.

The commentators questioned the usefulness of this

information.
Under section 25A and the regulations thereunder, the education
tax credit is allowable only for amounts actually paid during the
calendar year for an academic period that begins during the same
calendar year or during the first three months of the next calendar
year.

Therefore, there may be situations where an institution

reports amounts billed for qualified expenses in one calendar year
that relate to an academic period that begins during the first three
months of the next calendar year, and the taxpayer pays the qualified
expenses in the next calendar year.

In this situation, the taxpayer

and the IRS should be advised that the amounts reported as billed
during a calendar year may not be amounts for which the taxpayer may
claim the education tax credit for that year.

Therefore, the final

11
regulations do not adopt this recommendation.
(ii) Reporting Requirements for Increases to Charges for Qualified
Expenses and Grants Reported for a Prior Calendar Year
One commentator requested clarification as to whether the 2002
proposed regulations purposely did not require separate reporting for
increases to charges for qualified expenses and grants reported by
the institution for a prior calendar year.

The amendments to section

6050S by Public Law 107-131 require institutions to report the
aggregate amount of charges for qualified expenses and the aggregate
amount of grants administered and processed during the calendar year.
These aggregate amounts would include any increases in charges for
qualified expenses that relate to a prior year and any increases in
grants that relate to a prior year.

Therefore, no separate reporting

is required for increases to charges for qualified expenses and
grants that relate to a prior year.
(iii) Information Contact
The 2002 proposed regulations require institutions and insurers
to include on the information statement furnished to the student the
name, address, and phone number of the office or department within
the institution or insurer that is the information contact.

Several

commentators requested that the regulations be revised to allow third
party service providers that file information returns on behalf of
the institutions or the insurers, as well as a third party call
centers, to be designated as the information contact.

Consistent

12
with section 6050S(d)(1), the final regulations require institutions
and insurers to include the name, address, and phone number of the
information contact of the person required to file the information
return.

This provision does not preclude any institution or insurer

that is required to file an information return from including, in
addition to its own name, address, and phone number, the name,
address, and phone number of a third party service provider.
C.

Information reporting penalties

(i) Filing Information Returns with Missing TINs
Several commentators to the 2002 proposed regulations requested
that institutions not be required to file information returns and to
furnish information statements for students who refuse to provide
their TINs.

Information returns and information statements with

missing TINs are useful to both the IRS and the taxpayer in verifying
the amount of any allowable education tax credit (as well as other
tax benefits for higher education expenses).

Therefore, the final

regulations do not adopt this recommendation.
2.

Requirement to File Information Returns on Magnetic Media
The final regulations amend the regulations under section

6011(e) to require institutions and insurers who are required to file
250 or more Forms 1098-T, “Tuition Statement,” to file on magnetic
media.
Special Analyses

13
It has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866.
Therefore, a regulatory assessment is not required.

It has also been

determined that section 553(b) of the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these regulations.

A final

regulatory flexibility analysis has been prepared for the collection
of information in this Treasury decision.

This analysis is set forth

in this preamble under the heading “Final Regulatory Flexibility
Analysis.”

Pursuant to section 7805(f) of the Code, the proposed

regulations preceding these regulations were submitted to the Chief
Counsel for Advocacy of the Small Business Administration for comment
on its impact on small business.
Final Regulatory Flexibility Analysis
The collection of information contained in §1.6050S-1 is needed
to assist the IRS and taxpayers in determining the amount of any
education tax credit allowable under section 25A (as well as other
tax benefits for higher education expenses).

The objectives of these

final regulations are to provide uniform, practicable, and
administrable rules under section 6050S.

The types of small entities

to which the regulations may apply are small eligible educational
institutions (such as colleges and universities) and certain insurers
who reimburse educational expenses.
There are no known Federal rules that duplicate, overlap, or

14
conflict with these regulations.

The regulations are considered to

have the least economic impact on small entities of all alternatives
considered.
Moreover, the regulations requiring filing Forms 1098-T on
magnetic media impose no additional reporting or record keeping and
only prescribe the method of filing information returns that are
already required to be filed.

Further, these regulations are

consistent with the statutory requirement that an institution or
insurer is not required to file Forms 1098-T on magnetic media unless
required to file at least 250 or more returns during the year.
Finally, the economic impact caused by requiring Forms 1098-T on
magnetic media should be minimal because most institutions’ or
insurers’ operations are computerized.

Even if their operations are

not computerized, the incremental cost of magnetic media reporting
should be minimal in most cases because of the availability of
computer service bureaus.

In addition, the existing regulations

under section 6011(e) provide that the IRS may waive the magnetic
media filing requirements on a showing of hardship.

The waiver

authority will be exercised so as not to unduly burden institutions
and insurers lacking both the necessary data processing facilities
and access at a reasonable cost to computer service bureaus.
Drafting Information
The principal author of the regulations is Tonya Christianson,

15
Office of Associate Chief Counsel (Procedure and Administration),
Administrative Provisions and Judicial Practice Division.

However,

other personnel from the IRS and the Treasury Department participated
in the development of the regulations.
List of Subjects
26 CFR Part 1
Income tax, Reporting and record keeping requirements.
26 CFR Part 301
Employment tax, Estate tax, Excise tax, Gift tax, Income tax,
Penalties, Reporting and record keeping requirements.
26 CFR Part 602
Reporting and recordkeeping.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR parts 1, 301, and 602 are amended as
follows:
PART 1--INCOME TAX
Paragraph 1.

The authority citation for part 1 is amended by

adding an entry in numerical order to read in part as follows:
Authority:

26 U.S.C. 7805 * * *

Section 1.6050S-1 also issued under section 26 U.S.C.
6050S(g).* * *
Par. 2.

Section 1.6050S-0 is amended by revising the

introductory language and adding new entries for §1.6050S-1 to read

16
as follows:
§1.6050S-0

Table of contents

This section lists captions contained in §§1.6050S-1, 1.6050S2T, 1.6050S-3, and 1.6050S-4T.
§1.6050S-1
expenses.

Information reporting for qualified tuition and related

(a) Information reporting requirement.
(1) In general.
(2) Exceptions.
(i) No reporting by institutions or insurers for nonresident alien
individuals.
(ii) No reporting by institutions for noncredit courses.
(A) In general.
(B) Academic credit defined.
(C) Example.
(iii) No reporting by institutions for individuals whose qualified
tuition and related expenses are waived or are paid with
scholarships.
(iv) No reporting by institutions for individuals whose qualified
tuition and related expenses are covered by a formal billing
arrangement.
(A) In general.
(B) Formal billing arrangement defined.
(b) Requirement to file return.
(1) In general.
(2) Information reporting requirements for institutions that elect to
report payments received for qualified tuition and related expenses.
(i) In general.
(ii) Information included on return.
(iii) Reportable amount of payments received for qualified tuition
and related expenses during calendar year determined.
(iv) Separate reporting of reimbursements or refunds of payments of
qualified tuition and related expenses that were reported for a prior
calendar year.
(v) Payments received for qualified tuition and related expenses
determined.
(vi) Reimbursements or refunds of payments for qualified tuition and
related expenses determined.
(vii) Examples.
(3) Information reporting requirements for institutions that elect to
report amounts billed for qualified tuition and related expenses.
(i) In general.

17
(ii) Information included on return.
(iii) Reportable amounts billed for qualified tuition and related
expenses during calendar year determined.
(iv) Separate reporting of reductions made to amounts billed for
qualified tuition and related expenses that were reported for a prior
calendar year.
(v) Examples.
(4) Requirements for insurers.
(i) In general.
(ii) Information included on return.
(5) Time and place for filing return.
(i) In general.
(ii) Return for nonresident alien individual.
(iii) Extensions of time.
(6) Use of magnetic media.
(c) Requirement to furnish statement.
(1) In general.
(2) Time and manner for furnishing statement.
(i) In general.
(ii) Statement to nonresident alien individual.
(iii) Extensions of time.
(3) Copy of Form 1098-T.
(d) Special rules.
(1) Enrollment determined.
(2) Payments of qualified tuition and related expenses received or
collected by one or more persons.
(i) In general.
(ii) Exception.
(3) Governmental units.
(e) Penalty provisions.
(1) Failure to file correct returns.
(2) Failure to furnish correct information statements.
(3) Waiver of penalties for failures to include a correct TIN.
(i) In general.
(ii) Acting in a responsible manner.
(iii) Manner of soliciting TIN.
(4) Failure to furnish TIN.
(f) Effective date.
* * * * *
Par. 3.
§1.6050S-1
expenses.

Section 1.6050S-1 is added to read as follows:
Information reporting for qualified tuition and related

18
(a) Information reporting requirement--(1) In general.

Except

as provided in paragraph (a)(2) of this section, any eligible
educational institution (as defined in section 25A(f)(2) and the
regulations thereunder)(an institution) that enrolls (as determined
under paragraph (d)(1) of this section) any individual for any
academic period (as defined in the regulations under section 25A),
and any person that is engaged in a trade or business of making
payments under an insurance arrangement as reimbursements or refunds
(or other similar amounts) of qualified tuition and related expenses
(as defined in section 25A(f)(1) and the regulations thereunder)(an
insurer) must-(i) File an information return, as described in paragraph (b)
of this section, with the Internal Revenue Service (IRS) with respect
to each individual described in paragraph (b) of this section; and
(ii) Furnish a statement, as described in paragraph (c) of this
section, to each individual described in paragraph (c) of this
section.
(2) Exceptions--(i) No reporting by institution or insurer for
nonresident alien individuals.

The information reporting

requirements of this section do not apply with respect to any
individual who is a nonresident alien (as defined in section 7701(b)
and §301.7701(b)-3 of this chapter) during the calendar year, unless
the individual requests the institution or insurer to report.

If a

19
nonresident alien individual requests an institution or insurer to
report, the institution or insurer must comply with the requirements
of this section for the calendar year with respect to which the
request is made.
(ii) No reporting by institutions for noncredit courses–-(A) In
general.

The information reporting requirements of this section do

not apply with respect to any course for which no academic credit is
offered by the institution.
(B) Academic credit defined.

Academic credit means credit

offered by an institution for the completion of course work leading
toward a post-secondary degree, certificate, or other recognized
post-secondary educational credential.
(C) Example.

The following example illustrates the rules of

this paragraph (a)(2)(ii):
Example. Student A, a medical doctor, takes a course at
University X’s medical school. Student A takes the course to fulfill
State Y’s licensing requirement that medical doctors attend
continuing medical education courses each year. Student A is not
enrolled in a degree program at University X and takes the medical
course through University X’s continuing professional education
division. University X does not offer credit toward a post-secondary
degree on an academic transcript for the completion of the course but
gives Student A a certificate of attendance upon completion. Under
this paragraph (a)(2)(ii), University X is not subject to the
information reporting requirements of section 6050S and this section
for the medical education course taken by Student A.
(iii) No reporting by institutions for individuals whose
qualified tuition and related expenses are waived or are paid with
scholarships.

The information reporting requirements of this section

20
do not apply with respect to any individual whose qualified tuition
and related expenses are waived in their entirety or are paid
entirely with scholarships.
(iv) No reporting by institutions for individuals whose
qualified tuition and related expenses are covered by a formal
billing arrangement--(A) In general.

The information reporting

requirements of this section do not apply with respect to any
individual whose qualified tuition and related expenses are covered
by a formal billing arrangement as defined in paragraph (a)(2)(iv)(B)
of this section.
(B) Formal billing arrangement defined.

A formal billing

arrangement means-(1) An arrangement in which the institution bills only an
employer for education furnished by the institution to an individual
who is the employer’s employee and does not maintain a separate
financial account for that individual;
(2) An arrangement in which the institution bills only a
governmental entity for education furnished by the institution to an
individual and does not maintain a separate financial account for
that individual; or
(3) Any other similar arrangement in which the institution
bills only an institutional third party for education furnished to an
individual and does not maintain a separate financial account for

21
that individual, but only if designated as a formal billing
arrangement by the Commissioner in published guidance of general
applicability or in guidance directed to participants in specific
arrangements.
(b) Requirement to file return--(1) In general.

Institutions

may elect to report either the information described in paragraph
(b)(2) of this section, or the information described in paragraph
(b)(3) of this section.

Once an institution elects to report under

either paragraph (b)(2) or (3) of this section, the institution must
use the same reporting method for all calendar years in which it is
required to file returns, unless permission is granted to change
reporting methods.

Paragraph (b)(2) of this section requires

institutions to report, among other information, the amount of
payments received during the calendar year for qualified tuition and
related expenses.

Institutions must report separately adjustments

made during the calendar year that relate to payments received for
qualified tuition and related expenses that were reported for a prior
calendar year.

For purposes of paragraph (b)(2) of this section, an

adjustment made to payments received means a reimbursement or refund.
Paragraph (b)(3) requires institutions to report, among other
information, the amounts billed during the calendar year for
qualified tuition and related expenses.

Institutions must report

separately adjustments made during the calendar year that relate to

22
amounts billed for qualified tuition and related expenses that were
reported for a prior calendar year.

For purposes of paragraph (b)(3)

of this section, an adjustment made to amounts billed means a
reduction in charges.

Insurers must report the information described

in paragraph (b)(4) of this section.
(2) Information reporting requirements for institutions that
elect to report payments received for qualified tuition and related
expenses--(i) In general.

Except as provided in paragraph (a)(2) of

this section, an institution reporting payments received for
qualified tuition and related expenses must file an information
return with the IRS on Form 1098-T, “Tuition Statement,” with respect
to each individual enrolled (as determined in paragraph (d)(1) of
this section) for an academic period beginning during the calendar
year or during a prior calendar year and for whom a transaction
described in paragraph (b)(2)(ii)(C), (E), (F) or (G) of this section
is made during the calendar year.

An institution may use a

substitute Form 1098-T if the substitute form complies with
applicable revenue procedures relating to substitute forms (see
§601.601(d)(2) of this chapter).
(ii) Information included on return.

An institution reporting

payments received for qualified tuition and related expenses must
include on Form 1098-T-(A) The name, address, and taxpayer identification number

23
(TIN)(as defined in section 7701(a)(41)) of the institution;
(B) The name, address, and TIN of the individual who is, or has
been, enrolled by the institution;
(C) The amount of payments of qualified tuition and related
expenses that the institution received from any source with respect
to the individual during the calendar year;
(D) An indication by the institution whether any payments
received for qualified tuition and related expenses reported for the
calendar year relate to an academic period that begins during the
first three months of the next calendar year;
(E) The amount of any scholarships or grants for the payment of
the individual’s costs of attendance that the institution
administered and processed during the calendar year;
(F) The amount of any reimbursements or refunds of qualified
tuition and related expenses made during the calendar year with
respect to the individual that relate to payments of qualified
tuition and related expenses that were reported by the institution
for a prior calendar year;
(G) The amount of any reductions to the amount of scholarships
or grants for the payment of the individual’s costs of attendance
that were reported by the institution with respect to the individual
for a prior calendar year;
(H) A statement or other indication showing whether the

24
individual was enrolled for at least half of the normal full-time
work load for the course of study the individual is pursuing for at
least one academic period that begins during the calendar year (see
section 25A and the regulations thereunder);
(I) A statement or other indication showing whether the
individual was enrolled in a program leading to a graduate-level
degree, graduate-level certificate, or other recognized graduatelevel educational credential; and
(J) Any other information required by Form 1098-T and its
instructions.
(iii) Reportable amount of payments received for qualified
tuition and related expenses during calendar year determined.

The

amount of payments received for qualified tuition and related
expenses with respect to an individual during the calendar year that
is reportable on Form 1098-T is determined by netting the amount of
payments received (as defined in paragraph (b)(2)(v) of this section)
for qualified tuition and related expenses during the calendar year
against any reimbursements or refunds (as defined in paragraph
(b)(2)(vi) of this section) made during the calendar year that relate
to payments received for qualified tuition and related expenses
during the same calendar year.
(iv) Separate reporting of reimbursements or refunds of
payments of qualified tuition and related expenses that were reported

25
for a prior calendar year.

An institution must separately report on

Form 1098-T any reimbursements or refunds (as defined in paragraph
(b)(2)(vi) of this section) made during the current calendar year
that relate to payments of qualified tuition and related expenses
that were reported by the institution for a prior calendar year.
Such reimbursements or refunds shall not be netted against the
payments received for qualified tuition and related expenses during
the current calendar year.
(v) Payments received for qualified tuition and related
expenses determined.

For purposes of determining the amount of

payments received for qualified tuition and related expenses during a
calendar year, payments received with respect to an individual during
the calendar year from any source (except for any scholarship or
grant that, by its terms, must be applied to expenses other than
qualified tuition and related expenses, such as room and board) are
treated as payments of qualified tuition and related expenses up to
the total amount billed by the institution for such expenses.

For

purposes of this section, a payment includes any positive account
balance (such as any reimbursement or refund credited to an
individual’s account) that an institution applies toward current
charges.
(vi) Reimbursements or refunds of payments for qualified
tuition and related expenses determined.

For purposes of determining

26
the amount of reimbursements or refunds made of payments received for
qualified tuition and related expenses, any reimbursement or refund
made with respect to an individual during a calendar year (except for
any refund of a scholarship or grant that, by its terms, was required
to be applied to expenses other than qualified tuition and related
expenses, such as room and board) is treated as a reimbursement or
refund of payments for qualified tuition and related expenses up to
the amount of any reduction in charges for such expenses.

For

purposes of this section, a reimbursement or refund includes amounts
that an institution credits to an individual’s account, as well as
amounts disbursed to, or on behalf of, the individual.
(vii) Examples.

The following examples illustrate the rules in

this paragraph (b)(2):
Example 1. (i) In early August 2003, University X bills
enrolled Student A $10,000 for qualified tuition and related expenses
and $6,000 for room and board for the 2003 Fall semester. In late
August 2003, Student A pays $11,000 to University X. In early
September 2003, Student A drops to half-time enrollment for the 2003
Fall semester. In late September 2003, University X credits $5,000
to Student A’s account, reflecting a $5,000 reduction in charges for
qualified tuition and related expenses. In late September 2003,
University X applies the $5,000 positive account balance toward
current charges.
(ii) Under paragraph (b)(2)(v) of this section, the $11,000
payment is treated as a payment of qualified tuition and related
expenses up to the $10,000 billed for qualified tuition and related
expenses. Under paragraph (b)(2)(vi) of this section, the $5,000
credited to the student’s account is treated as a reimbursement or
refund of payments for qualified tuition and related expenses,
because the current year charges for qualified tuition and
related expenses were reduced by $5,000. Under paragraph
(b)(2)(iii) of this section, University X is required to net

27
the $10,000 payment received for qualified tuition and related
expenses during 2003 against the $5,000 reimbursement or
refund of payments received for qualified tuition and related
expenses during 2003. Therefore, Institution X is required to
report $5,000 of payments received for qualified tuition and related
expenses during 2003.
Example 2. (i) The facts are the same as in Example 1, except
that Student A pays the full $16,000 in late August 2003. In late
September 2003, University X reduces the tuition charges by $5,000
and issues a $5,000 refund to Student A.
(ii) Under paragraph (b)(2)(v) of this section, the $16,000
payment is treated as a payment of qualified tuition and related
expenses up to the $10,000 billed for qualified tuition and related
expenses. Under paragraph (b)(2)(vi) of this section, the $5,000
refund is treated as reimbursement or refund of payments for
qualified tuition and related expenses, because the current year
charges for qualified tuition and related expenses were reduced by
$5,000. Under paragraph (b)(2)(iii) of this section, University X is
required to net the $10,000 payment received for qualified tuition
and related expenses during 2003 against the $5,000 reimbursement or
refund of payments received for qualified tuition and related
expenses during 2003. Therefore, Institution X is required to report
$5,000 of payments received for qualified tuition and related
expenses during 2003.
Example 3. (i) The facts are the same as in Example 1, except
that Student A is enrolled full-time, and, in early September 2003,
Student A decides to live at home with her parents. In late
September 2003, University X adjusts Student A’s account to eliminate
room and board charges and issues a $1,000 refund to Student A.
(ii) Under paragraph (b)(2)(v) of this section, the $11,000
payment is treated as a payment of qualified tuition and related
expenses up to the $10,000 billed for qualified tuition and related
expenses. Under paragraph (b)(2)(vi) of this section, the $1,000
refund is not treated as reimbursement or refund of payments for
qualified tuition and related expenses, because there is no reduction
in charges for qualified tuition and related expenses. Therefore,
under paragraph (b)(2)(iii) of this section, University X is required
to report $10,000 of payments received for qualified tuition and
related expenses during 2003.
Example 4. (i) In early December 2003, College Y bills
enrolled Student B $10,000 for qualified tuition and related expenses

28
and $6,000 for room and board for the 2004 Spring semester. In late
December 2003, Student B pays $16,000. In mid-January 2004, after
the 2004 Spring semester classes begin, Student B drops to half-time
enrollment. In mid-January 2004, College Y credits Student B’s
account with $5,000, reflecting a $5,000 reduction in charges for
qualified tuition and related expenses, but does not issue a refund
to Student B. In early August 2004, College Y bills Student B
$10,000 for qualified tuition and related expenses and $6,000 for
room and board for the 2004 Fall semester. In early September 2004,
College Y applies the $5,000 positive account balance toward Student
B’s $16,000 bill for the 2004 Fall semester. In late September 2004,
Student B pays $6,000 towards the charges.
(ii) In the reporting for calendar year 2003, under paragraph
(b)(2)(v) of this section, the $16,000 payment in December 2003 is
treated as a payment of qualified tuition and related expenses up to
the $10,000 billed for qualified tuition and related expenses. Under
paragraph (b)(2)(iii) of this section, College Y is required to
report $10,000 of payments received for qualified tuition and related
expenses during 2003. In addition, College Y is required to indicate
that the payments reported for 2003 relate to an academic period that
begins during the first three months of the next calendar year.
(iii) In the reporting for calendar year 2004, under paragraph
(b)(2)(vi) of this section, the $5,000 credited to Student B’s
account is treated as a reimbursement or refund of qualified tuition
and related expenses, because the charges for qualified tuition and
related expenses were reduced by $5,000. Under paragraph (b)(2)(iv)
of this section, the $5,000 reimbursement or refund of qualified
tuition and related expenses must be separately reported on Form
1098-T because it relates to payments of qualified tuition and
related expenses reported by College Y for 2003. Under paragraph
(b)(2)(v) of this section, the $5,000 positive account balance that
is applied toward charges for the 2004 Fall semester is treated as a
payment. Therefore, College Y received total payments of $11,000
during 2004 (the $5,000 credit plus the $6,000 payment). Under
paragraph (b)(2)(v) of this section, the $11,000 of total payments
are treated as a payment of qualified tuition and related expenses up
to the $10,000 billed for such expenses. Therefore, for 2004,
College Y is required to report $10,000 of payments received for
qualified tuition and related expenses during 2004 and a $5,000
refund of payments of qualified tuition and related expenses reported
for 2003.
(3) Information reporting requirements for institutions that

29
elect to report amounts billed for qualified tuition and related
expenses--(i) In general.

Except as provided in paragraph (a)(2) of

this section, an institution reporting amounts billed for qualified
tuition and related expenses must file an information return on Form
1098-T with respect to each individual enrolled (as determined in
paragraph (d)(1) of this section) for an academic period beginning
during the calendar year or during a prior calendar year and for whom
a transaction described in paragraph (b)(3)(ii)(C), (E), (F) or (G)
of this section is made during the calendar year.

An institution may

use a substitute Form 1098-T if the substitute form complies with
applicable revenue procedures relating to substitute forms (see
§601.601(d)(2) of this chapter).
(ii) Information included on return.

An institution reporting

amounts billed for qualified tuition and related expenses must
include on Form 1098-T-(A) The name, address, and taxpayer identification number
(TIN)(as defined in section 7701(a)(41)) of the institution;
(B) The name, address, and TIN of the individual who is, or has
been, enrolled by the institution;
(C) The amount billed for qualified tuition and related
expenses with respect to the individual during the calendar year;
(D) An indication by the institution whether any amounts billed
for qualified tuition and related expenses reported for the calendar

30
year relate to an academic period that begins during the first three
months of the next calendar year;
(E) The amount of any scholarships or grants for the payment of
the individual’s costs of attendance that the institution
administered and processed during the calendar year;
(F) The amount of any reductions in charges made during the
calendar year with respect to the individual that relate to amounts
billed for qualified tuition and related expenses that were reported
by the institution for a prior calendar year;
(G) The amount of any reductions to the amount of scholarships
or grants for the payment of the individual’s costs of attendance
that were reported by the institution with respect to the individual
for a prior calendar year;
(H) A statement or other indication showing whether the
individual was enrolled for at least half of the normal full-time
work load for the course of study the individual is pursuing for at
least one academic period that begins during the calendar year (see
section 25A and the regulations thereunder);
(I) A statement or other indication showing whether the
individual was enrolled in a program leading to a graduate-level
degree, graduate-level certificate, or other recognized graduatelevel educational credential; and
(J) Any other information required by Form 1098-T and its

31
instructions.
(iii) Reportable amounts billed for qualified tuition and
related expenses during calendar year determined.

The amount billed

for qualified tuition and related expenses with respect to an
individual during the calendar year that is reportable on Form 1098-T
is determined by netting the amounts billed for qualified tuition and
related expenses during the calendar year against any reductions in
charges for qualified tuition and related expenses made during the
calendar year that relate to amounts billed for qualified tuition and
related expenses during the same calendar year.
(iv) Separate reporting of reductions made to amounts billed
for qualified tuition and related expenses that were reported for a
prior calendar year.

An institution must separately report on Form

1098-T any reductions in charges made during the current calendar
year that relate to amounts billed for qualified tuition and related
expenses that were reported by the institution for a prior calendar
year.

Such reductions shall not be netted against amounts billed for

qualified tuition and related expenses during the current calendar
year.
(v) Examples.

The following examples illustrate the rules in

this paragraph (b)(3):
Example 1. (i) In early August 2003, University X bills
enrolled Student A $10,000 for qualified tuition and related expenses
and $6,000 for room and board for the 2003 Fall semester. In late
August 2003, Student A pays $11,000 to University X. In early

32
September 2003, Student A drops to half-time enrollment for the 2003
Fall semester. In late September 2003, University X adjusts Student
A’s account and reduces the charges for qualified tuition and related
expenses by $5,000 to reflect half-time enrollment. In late
September 2003, University X applies the $5,000 account balance
toward current charges.
(ii) Under paragraph (b)(3)(iii) of this section, University X
is required to net the $10,000 amount of qualified tuition and
related expenses billed during 2003 against the $5,000 reduction in
charges for qualified tuition and related expenses during 2003.
Therefore, Institution X is required to report $5,000 in amounts
billed for qualified tuition and related expenses during 2003.
Example 2. (i) The facts are the same as in Example 1, except
that, in addition, in early December 2003, College X bills Student A
$10,000 for qualified tuition and related expenses and $6,000 for
room and board for the 2004 Spring semester. In early January 2004,
Student A pays $16,000. In mid-January 2004, after the 2004 Spring
semester classes begin, Student A drops to half-time enrollment. In
mid-January 2004, College X credits $5,000 to Student A’s account,
reflecting a $5,000 reduction in charges for qualified tuition and
related expenses, but does not issue a refund check to Student A. In
early August 2004, College X bills Student A $10,000 for qualified
tuition and related expenses and $6,000 for room and board for the
2004 Fall semester. In early September 2004, College X applies the
$5,000 positive account balance toward Student A’s $16,000 bill for
the 2004 Fall semester. In late September 2004, Student A pays
$6,000 toward the charges.
(ii) In the reporting for calendar year 2003, under paragraph
(b)(3)(iii) of this section, College X is required to report $15,000
amounts billed for qualified tuition and related expenses during 2003
($5,000 for the 2003 Fall semester and $10,000 for the 2004 Spring
semester). In addition, College X is required to indicate that some
of the amounts billed for qualified tuition and related expenses
reported for 2003 relate to an academic period that begins during the
first three months of the next calendar year.
(iii) In the reporting for calendar year 2004, under paragraph
(b)(3)(iv) of this section, the $5,000 reduction in charges for
qualified tuition and related expenses must be separately reported on
Form 1098-T because it relates to amounts billed for qualified
tuition and related expenses that were reported by College X for
2003. Under paragraph (b)(3)(iii) of this section, College X is
required to report $10,000 in amounts billed for qualified tuition

33
and related expenses during 2004.
(4) Requirements for insurers--(i) In general.

Except as

otherwise provided in this section, an insurer must file an
information return for each individual with respect to whom
reimbursements or refunds of qualified tuition and related expenses
are made during the calendar year on Form 1098-T.

An insurer may use

a substitute Form 1098-T if the substitute form complies with
applicable revenue procedures relating to substitute forms (see
§601.601(d)(2) of this chapter).
(ii) Information included on return.

An insurer must include

on Form 1098-T-(A) The name, address, and taxpayer identification number
(TIN)(as defined in section 7701(a)(41)) of the insurer;
(B) The name, address, and TIN of the individual with respect
to whom reimbursements or refunds of qualified tuition and related
expenses were made;
(C) The aggregate amount of reimbursements or refunds of
qualified tuition and related expenses that the insurer made with
respect to the individual during the calendar year; and
(D) Any other information required by Form 1098-T and its
instructions.
(5) Time and place for filing return--(i) In general.

Except

as provided in paragraphs (b)(5)(ii) and (iii) of this section, Form

34
1098-T must be filed on or before February 28 (March 31 if filed
electronically) of the year following the calendar year in which
payments were received, or amounts were billed, for qualified tuition
or related expenses, or reimbursements, refunds, or reductions of
such amounts were made.

An institution or insurer must file Form

1098-T with the IRS according to the instructions to Form 1098-T.
(ii) Return for nonresident alien individual.

In general, an

institution or insurer is not required to file a return on behalf of
a nonresident alien individual.

However, if a nonresident alien

individual requests an institution or insurer to report, the
institution or insurer must file a return described in paragraph (b)
of this section with the IRS on or before the date prescribed in
paragraph (b)(5)(i) of this section, or on or before the thirtieth
day after the request, whichever is later.
(iii) Extensions of time.

The IRS may grant an institution or

insurer an extension of time to file returns required in this section
upon a showing of good cause.

See General Instructions for Forms

1099 series, 1098 series, 5498 series, and W-2G, “Certain Gambling
Winnings,” and applicable revenue procedures for rules relating to
extensions of time to file (see §601.601(d)(2) of this chapter).
(6) Use of magnetic media.

See section 6011(e) and §301.6011-2

of this chapter for rules relating to the requirement to file Forms
1098-T on magnetic media.

35
(c) Requirement to furnish statement--(1) In general.

An

institution or insurer must furnish a statement to each individual
for whom it is required to file a Form 1098-T.

The statement must

include-(i) The information required under paragraph (b) of this
section;
(ii) A legend that identifies the statement as important tax
information that is being furnished to the IRS;
(iii) Instructions that-(A) State that the statement reports either total payments
received by the institution for qualified tuition and related
expenses during the calendar year, or total amounts billed by the
institution for qualified tuition and related expenses during the
calendar year, or the total reimbursements or refunds made by the
insurer;
(B) State that, under section 25A and the regulations
thereunder, the taxpayer may claim an education tax credit only with
respect to qualified tuition and related expenses actually paid
during the calendar year; and that the taxpayer may not be able to
claim an education tax credit with respect to the entire amount of
payments received, or amounts billed, for qualified tuition and
related expenses reported for the calendar year;
(C) State that the amount of any scholarships or grants

36
reported for the calendar year and other similar amounts not reported
(because they are not administered and processed by the institution)
may reduce the amount of any allowable education tax credit for the
taxable year;
(D) State that the amount of any reimbursements or refunds of
payments received, or reductions in charges, for qualified tuition
and related expenses, or any reductions to the amount of scholarships
or grants, reported by the institution with respect to the individual
for a prior calendar year may affect the amount of any allowable
education tax credit for the prior calendar year (and may result in
an increase in tax liability for the year of the refund);
(E) State that the amount of any reimbursements or refunds of
qualified tuition and related expenses reported by an insurer may
reduce the amount of an allowable education tax credit for a taxable
year (and may result in an increase in tax liability for the year of
the refund);
(F) State that the taxpayer should refer to relevant IRS forms
and publications, and should not refer to the institution or the
insurer, for explanations relating to the eligibility requirements
for, and calculation of, any allowable education tax credit; and
(G) Include the name, address, and phone number of the
information contact of the institution or insurer that filed the Form
1098-T.

37
(2) Time and manner for furnishing statement--(i) In general.
Except as provided in paragraphs (c)(2)(ii) and (iii) of this
section, an institution or insurer must furnish the statement
described in paragraph (c)(1) of this section to each individual for
whom it is required to file a return, on or before January 31 of the
year following the calendar year in which payments were received, or
amounts were billed, for qualified tuition and related expenses, or
reimbursements, refunds, or reductions of such amounts were made.

If

mailed, the statement must be sent to the individual’s permanent
address, or the individual’s temporary address if the institution or
insurer does not know the individual’s permanent address.

If

furnished electronically, the statement must be furnished in
accordance with the applicable regulations.
(ii) Statement to nonresident alien individual.

If an

information return is filed for a nonresident alien individual, the
institution or insurer must furnish a statement described in
paragraph (c)(1) of this section to the individual in the manner
prescribed in paragraph (c)(2)(i) of this section.

The statement

must be furnished on or before the later of the date prescribed in
paragraph (c)(2)(i) of this section or the thirtieth day after the
nonresident alien’s request to report.
(iii) Extensions of time.

The IRS may grant an institution or

insurer an extension of time to furnish the statements required in

38
this section upon a showing of good cause.

See General Instructions

for Forms 1099 series, 1098 series, 5498 series, and W-2G, “Certain
Gambling Winnings,” and applicable revenue procedures for rules
relating to extensions of time to furnish statements (see
§601.601(d)(2) of this chapter).
(3) Copy of Form 1098-T.

An institution or insurer may satisfy

the requirement of this paragraph (c) by furnishing either a copy of
Form 1098-T and its instructions or another document that contains
all of the information filed with the IRS and the information
required by paragraph (c)(1) of this section if the document complies
with applicable revenue procedures relating to substitute statements
(see §601.601(d)(2) of this chapter).
(d) Special rules--(1) Enrollment determined.

An institution

may determine its enrollment for each academic period under its own
rules and policies for determining enrollment or as of any of the
following dates-(i) 30 days after the first day of the academic period;
(ii) A date during the academic period on which enrollment data
must be collected for purposes of the Integrated Post Secondary
Education Data System administered by the Department of Education; or
(iii) A date during the academic period on which the
institution must report enrollment data to the State, the
institution’s governing body, or some other external governing body.

39
(2) Payments of qualified tuition and related expenses received
or collected by one or more persons--(i) In general.

Except as

otherwise provided in paragraph (d)(2)(ii) of this section, if a
person collects or receives payments of qualified tuition and related
expenses on behalf of another person (e.g., an institution), the
person collecting or receiving payments must satisfy the requirements
of paragraphs (b) and (c) of this section.

In this case, those

requirements do not apply to the transfer of the payments to the
institution.
(ii) Exception.

If the person collecting or receiving payments

of qualified tuition and related expenses on behalf of another person
(e.g., an institution) does not possess the information needed to
comply with the requirements of paragraphs (b) and (c) of this
section, the other person must satisfy those
(3) Governmental units.

requirements.

An institution or insurer that is a

governmental unit, or an agency or instrumentality of a governmental
unit, is subject to the requirements of paragraphs (b) and (c) of
this section and an appropriately designated officer or employee of
the governmental entity must satisfy those requirements.
(e) Penalty provisions--(1) Failure to file correct returns.
The section 6721 penalty may apply to an institution or insurer that
fails to file information returns required by section 6050S and this
section on or before the required filing date; that fails to include

40
all of the required information on the return; or that includes
incorrect information on the return.

See section 6721, and the

regulations thereunder, for rules relating to penalties for failure
to file correct returns.

See section 6724, and the regulations

thereunder, for rules relating to waivers of penalties for certain
failures due to reasonable cause.
(2) Failure to furnish correct information statements.

The

section 6722 penalty may apply to an institution or insurer that
fails to furnish statements required by section 6050S and this
section on or before the prescribed date; that fails to include all
the required information on the statement; or that includes incorrect
information on the statement.

See section 6722, and the regulations

thereunder, for rules relating to penalties for failure to furnish
correct statements.

See section 6724, and the regulations

thereunder, for rules relating to waivers of penalties for certain
failures due to reasonable cause.
(3) Waiver of penalties for failures to include a correct TIN-(i) In general.

In the case of a failure to include a correct TIN on

Form 1098-T or a related information statement, penalties may be
waived if the failure is due to reasonable cause.

Reasonable cause

may be established if the failure arose from events beyond the
institution’s or insurer’s control, such as a failure of the
individual to furnish a correct TIN.

However, the institution or

41
insurer must establish that it acted in a responsible manner both
before and after the failure.
(ii) Acting in a responsible manner.

An institution or insurer

must request the TIN of each individual for whom it is required to
file a return if it does not already have a record of the
individual’s correct TIN.

If the institution or insurer does not

have a record of the individual’s correct TIN, then it must solicit
the TIN in the manner described in paragraph (e)(3)(iii) of this
section on or before December 31 of each year during which it
receives payments, or bills amounts, for qualified tuition and
related expenses or makes reimbursements, refunds, or reductions of
such amounts with respect to the individual.

If an individual

refuses to provide his or her TIN upon request, the institution or
insurer must file the return and furnish the statement required by
this section without the individual’s TIN, but with all other
required information.

The specific solicitation requirements of

paragraph (e)(3)(iii) of this section apply in lieu of the
solicitation requirements of §301.6724-1(e) and (f) of this chapter
for the purpose of determining whether an institution or insurer
acted in a responsible manner in attempting to obtain a correct TIN.
An institution or insurer that complies with the requirements of this
paragraph (e)(3) will be considered to have acted in a responsible
manner within the meaning of §301.6724-1(d) of this chapter with

42
respect to any failure to include the correct TIN of an individual on
a return or statement required by section 6050S and this section.
(iii) Manner of soliciting TIN.

An institution or insurer must

request the individual’s TIN in writing and must clearly notify the
individual that the law requires the individual to furnish a TIN so
that it may be included on an information return filed by the
institution or insurer.

A request for a TIN made on Form W-9S,

“Request for Student’s or Borrower’s Taxpayer Identification Number
and Certification,” satisfies the requirements of this paragraph
(e)(3)(iii).

An institution or insurer may establish a system for

individuals to submit Forms W-9S electronically as described in
applicable forms and instructions.

An institution or insurer may

also develop a separate form to request the individual’s TIN or
incorporate the request into other forms customarily used by the
institution or insurer, such as admission or enrollment forms or
financial aid applications.
(4) Failure to furnish TIN.

The section 6723 penalty may apply

to any individual who is required (but fails) to furnish his or her
TIN to an institution or insurer.

See section 6723, and the

regulations thereunder, for rules relating to the penalty for failure
to furnish a TIN.
(f) Effective date.

The rules in this section apply to

information returns required to be filed, and information statements

43
required to be furnished, after December 31, 2003.
PART 301--PROCEDURE AND ADMINISTRATION
Par. 4.

The authority citation for part 301 continues to read

in part as follows:
Authority:
Par. 5.
1.

26 U.S.C. 7805 * * *

Section 301.6011-2 is amended as follows:

In paragraph (b)(1), first sentence, add the language

“1098-T,” immediately after the language “1098-E,”.
2.

Revising paragraph (g)(3).

The revision reads as follows:
§301.6011-2

Required use of magnetic media.

* * * * *
(g) * * *
(3) This section applies to returns on Forms 1098-E, “Student
Loan Interest Statement,” and 1098-T, “Tuition Statement,” filed
after December 31, 2003.
PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT
Par. 6.

The authority citation for part 602 continues to read

as follows:
Authority: 26 U.S.C. 7805.

Par. 7.

In §602.101, paragraph (b) is amended by adding an

entry in numerical order to the table to read as follows:
§602.101 OMB Control numbers.
* * * * *
(b) * * *
_________________________________________________________________
CFR part or section where
Current OMB
identified and described
Control No.
_________________________________________________________________
* * * * *
1.6050S-1 ...................................1545-1678
* * * * *

David A. Mader,
Assistant Deputy Commissioner of Internal Revenue.

Approved:

December 12, 2002.

Pamela F. Olson,
Assistant Secretary of the Treasury.