14 FAQs to Share With Your Clients About Using the IRS Data Retrieval Tool When Completing the FAFSA

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The Internal Revenue Service Data Retrieval Tool (IRS DRT) is available for the 2018‒19 FAFSA® form. Many of you remember the issues from last March that shut things down for your clients and their FAFSA submissions. Additional security and privacy protections have been added to address concerns that data from the tool could be used by identity thieves to file fraudulent tax returns. The IRS DRT will not return for this school year but it is there for next school year. The IRS DRT remains the fastest, most accurate way to input tax return information into the FAFSA form.

Here are the top 14 frequently asked questions about the IRS retrieval tool. Be sure to share them with your clients.

1.) What is the IRS Data Retrieval Tool (IRS DRT)?

The IRS DRT provides tax data that automatically fills in information for part of the FAFSA® form, as well as for the income-driven repayment plan application for federal student loan borrowers.

2.) What happened to the IRS DRT?

The IRS disabled the IRS DRT in March following concerns that data from the tool could be used by identity thieves to file fraudulent tax returns.

3.) Is the IRS DRT available with the 2018‒19 FAFSA® form?

Yes, additional privacy and security enhancements were added. You can use the IRS DRT to transfer your tax information into the 2018–19 FAFSA form if you’re eligible. The IRS DRT will not return for the 2017–18 FAFSA form.

4.) How has the IRS DRT changed?

For your privacy, the tax information you transfer from the IRS into your FAFSA form won’t be visible to you. Instead, you will see “Transferred from the IRS” in the appropriate fields on fafsa.gov, the IRS DRT web page, and on the Student Aid Report.

Also, if you filed an amended tax return, you now may be eligible to use the IRS DRT.

5.) Why can’t I see my own tax return information?

Your tax return information is no longer visible because of added security and privacy protections. Not displaying your information prevents potential identity thieves from accessing it.

6.) How will I know that the correct information has been transferred?

The tax return information that is being transferred into the FAFSA form is coming directly from the 2016 tax return you filed with the IRS. Your school’s financial aid office will have access to the transferred information and will follow up with you directly if they notice any issues or need additional information.

7.) Can I change the tax return information that I transfer into the FAFSA® form via the IRS DRT?

No. Information you transfer via the IRS DRT cannot be changed. Remember, the information transferred is coming from your filed 2016 tax return, so it should not need to be changed. If your financial situation has changed or you filed a 1040X amended return, contact your school’s financial aid office to discuss whether it would be appropriate for the school to adjust the information on your FAFSA form.

8.) Can I see the tax return information transferred via the IRS DRT on my Student Aid Report (SAR)?

No. Tax return information transferred via the IRS DRT will not be visible on the IRS DRT website, on fafsa.gov, or on your SAR.

9.) If I can’t see the tax information that’s transferred via the IRS DRT, will I be able to see my Expected Family Contribution on the fafsa.gov confirmation page or on my SAR?

Yes.

10.) If I enter my tax information manually, will I be able to see it?

Yes. Tax return information that’s entered manually will be visible on fafsa.gov and on your SAR.

11.) Will my school see the data that’s transferred from the IRS?

Yes, your school will have access to the tax return information that is transferred via the IRS DRT and will follow up with you if they notice issues or need more information.

12.) If I’ve transferred my tax return information into the FAFSA® form via the IRS DRT, and then decide I want to enter the information manually instead, can I clear the information that was transferred via the DRT?

We strongly discourage clearing the information. The IRS DRT remains the fastest, most accurate way to input your tax return information into the FAFSA form. Additionally, using the IRS DRT to enter your tax information into the FAFSA form may reduce the amount of paperwork you need to provide to your school later.

If, despite this, you still want to clear the information transferred via the IRS DRT and enter your tax information manually—and you haven’t submitted the application or correction yet—you can click “CLEAR ALL DATA” at the bottom of fafsa.gov. Just know that by doing so, the entire application or correction will be cleared, and you will have to start the entire application or correction over again.

13.) My Expected Family Contribution seems really high, and I think something must have gone wrong when my data was transferred from the IRS. How can I check to make sure the correct data was transferred?

You can contact your school’s financial aid office to find out your school’s process for providing the specific information that was transferred into the FAFSA form via the IRS DRT.

14.) If I go to the IRS DRT website and change my mind about transferring my tax return information, how do I return to fafsa.gov?

If you get to the IRS DRT web page and decide you don’t want to transfer your information into the FAFSA form, just click the “Do Not Transfer” button and return to the FAFSA form.

 

Posted by Josh Miner

Involved in the financial services industry for over twenty years, Josh is a nationally known sales and marketing coach for financial advisors and Managing Partner of Spike Sales, LLC, located in Dana Point, California.

Spike Sales provides comprehensive sales and marketing solutions for financial professionals. Josh has been a speaker and content provider for the ACCFS and is our Executive Director. The ACCFS partners with Spike Sales to handle the management of the day to day business functions. Spike Sales handles member support, web technology management, business development and many other valuable functions needed in today's ever-changing marketplace.