IRS Will Waive Form 1098-T Penalties
The IRS recently announced no penalties will be assessed on colleges, universities or other educational institutions that filed Forms 1098-T with incorrect or missing taxpayer identification numbers in tax years 2012 to 2014.
The relief is included as part of the Trade Preferences Extension Act of 2015 signed in June, which included a safe harbor provision for eligible educational institutions that filed Forms 1098-T, Tuition Statement, with missing or incorrect student TINs. Relief is granted if the educational institution certifies under penalty of perjury that it has complied with regulations governing solicitation of payee TINs. Institutions must still properly solicit payee TINs.
The IRS will notify institutions that were assessed a penalty for tax year 2012 about the decision to waive the penalty. An institution that has received a notice for 2012 should respond to the IRS using the original notice if the penalty waiver is not received by October 1, 2015. The IRS is not assessing penalties for tax years 2013 and 2014.
For more information on the waiver, contact your BKD advisor.