V?
Updates/Corrections
Verification Potpourri
Taxes Taxes Taxes
Lucky Number
100

List the 2016-17 Verification Tracking Groups that require verification of "Number in College"


V1
V5
V6
100

Updating refers to situations in which FAFSA data were:

  1.    incorrect at the time the FAFSA was filed, but had changed at the time of verification.

  2.    incorrect at the time verification was completed, but changed after verification.

  3.    correct at the time the FAFSA was filed, but had changed at the time of verification.

  4.    correct at the time of verification was completed, but changed after verification.


C. correct at the time the FAFSA was filed, but had changed at the time of verification.
100

If a student is not selected by the CPS for verification, but the school has reason to believe information reported on the FAFSA is incorrect, the school must

  1.    verify all of the information on the student’s FAFSA.

  2.    verify only the questionable information.

  3.    process the student’s application without changes.

  4.    report the student to ED’s Office of Inspector General.


B.   verify only the questionable information.
100

Financial aid administrators are expected to have basic knowledge of tax issues that could constitute conflicting information and/or substantially affect the EFC calculation. Which of the following is an FAA expected to know?

  1.    If someone is required to file a tax return.

  2.    The correct filing status for a tax filer.

  3.    Someone cannot be claimed as an exemption by more than one person.

  4.    A & B

  5.    A, B, & C


E.    A, B, & C
100

Any positive or negative change to a single dollar item of $______ or more must be reprocessed by CPS.



25
200

List the Verification Tracking Groups that require verification of "household size".


V1
V5
V6
200

If a school has a policy for updating a student’s dependency status due to a change in the student’s marital status, the school must...

  1.    update all other pertinent income and asset information related to the change in marital status.

  2.    establish a deadline during the award year after which it will not consider or allow such updates.

  3.    update dependency status for all students who have a change in marital status.

  4.    limit such dependency status updating only to students who are selected for verification.


A.   update all other pertinent income and asset information related to the change in marital status.
200

If the parents of a CPS-selected dependent student are nonfilers and the student’s Verification Tracking Group is V1, the parents must verify the amount of the parents’

  1.    Social Security benefits.

  2.    Veteran’s noneducational benefits.

  3.    income earned from work.

  4.    child support received.


C.   income earned from work.
200

IRS DRT: An IRS Request Flag of ____ indicates there is unaltered tax data, meaning IRS data was retrieved from the IRS using the IRS DRT and that data was not subsequently modified by the applicant.

  1.    01

  2.    02

  3.    03

  4.    04


B.   02
200

IRS Request Flag ____ for a student means that IRS data was transferred from the IRS and changed by the user prior to submission of an application or correction.



03
300

List the Verification Tracking Groups that require verification of "high school completion status".


V4
V5
300

After submitting the FAFSA, which was not selected for verification, a dependent student’s 23 year-old sister becomes unemployed, moves back home, and resumes less- than-half-time enrollment at the same school as the student. In addition to covering her living expenses, the parents will help her meet her tuition charges. In this situation, the school...

  1.    must update household size and number in college.

  2.    must update household size only.

  3.    may update household size and number in college only if it selects the student for verification.

  4.    may update household size only if it selects the student for verification.


D.   may update household size only if it selects the student for verification.
300

Which of the following is an allowable exclusion from verification?

  1.    The student was selected for verification after completely withdrawing and receiving all Title IV disbursements.

  2.    The student will accept only a Direct Unsubsidized Loan because his Federal Pell Grant eligibility is only for the minimum amount.

  3.    The dependent student’s parents are physically disabled.

  4.    The dependent student’s parents live in a foreign country.


A.   The student was selected for verification after completely withdrawing and receiving all Title IV disbursements.
300

True or False? If an institution verifies a student based on documentation of a tax extension, the institution must collect the final tax return data once filed and re-verify the required information.



FALSE   The institution MAY choose to request the final tax return data but is not required to.
300

The "specified year" for the 2016-2017 award year is _____.



2015
400

Veteran's noneducational benefits belong to which Verification Tracking Group?


V6
400

After submitting the FAFSA but before verification is completed, a dependent student’s divorced mother remarries and the student and mother move in with the new stepparent. In this situation, the school must update...

  1.    household size to include the new stepparent.

  2.    number in college if the stepparent is enrolled at least half-time at an eligible institution.

  3.    parental income information to include the stepparent’s income.

  4.    parental asset information to include the stepparent’s assets.


A.   household size to include the new stepparent.
400

New, for 2016-17, an applicant may be moved from previously assigned tracking groups to what new tracking group based on corrections made to the applicant's CPS record or other information available to the Department.



V5
400

A student is selected for verification (V1) by CPS and filed an amended tax return. In addition to a signed copy of the 1040X that was filed with the IRS, the institution must also collect:

  1.    an IRS Tax Return Transcript (or any other IRS tax transcript(s) that include all of the income and tax information required to be verified)

  2.    A signed copy of the original 1040 Form filed with the IRS

  3.    Nothing if the ISIR indicates a successful DRT code 02

  4.    A and B

  5.    A or C


A.   an IRS Tax Return Transcript (or any other IRS tax transcript(s) that include all of the income and tax information required to be verified)
400

IRS Publication ____ is a useful resource cited in the FSA Handbook and recommended when reviewing discrepant tax data.



17
500

Child support received belongs to which Verification Tracking Group?


V6
500

Under the updating requirements, a school...

  1.    must update dependency status throughout the award year regardless of the reason for the change in status.

  2.    may not update dependency status if the change in status is due to a change in the student’s marital status.

  3.    must update parental income and asset information if the school updates household size to include a dependent student’s new stepparent.

  4.    may not update an independent student’s marital status if the change in marital status does not change the student’s dependency status.


D.   may not update an independent student’s marital status if the change in marital status does not change the student’s dependency status.
500

If a CPS-selected dependent student is from a two-parent family and one of the parents is mentally incapacitated, the school must verify

  1.    all of the information for the student and both parents.

  2.    only the student’s information.

  3.    only the information of the student and the parent who is not mentally incapacitated.

  4.    none of the information for the student and both parents.


A.   all of the information for the student and both parents.
500

For 2016-17, individuals who are victims of IRS tax-related identity theft must submit to the institution which TWO items?

  1.    Tax Return DataBase View (TRDBV) transcript obtained from the IRS

  2.    Signed and dated statement from the tax filer indicating they were victims of IRS tax-related identity theft and that the IRS has been made aware of the tax identity theft.

  3.    Signed and dated statement from an IRS official indicating the individual was a victim of IRS tax-related identity theft and that the IRS is aware of the tax identity theft.

  4.    Copies of all W-2 forms


A & B:.   Tax Return DataBase View (TRDBV) transcript & Signed and dated statement from the tax filer indicating they were victims of IRS tax-related identity theft and that the IRS has been made aware of the tax identity theft.
500

In order to verify an income tax extension, the individual should submit a signed copy of IRS Form _____, "Application for Automatic Extension of Time to File US Individual Tax Return" (or IRS proof of unexpired extension beyond the 6-month automatic extension period) as well as W-2(s) or signed statement for self-employed individuals.



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