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Fact Sheet: Implementation of Mandatory Box 1 Reporting of IRS Form 1098-T

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Fact Sheet: Implementation of Mandatory Box 1 Reporting of IRS Form 1098-T

March 10, 2016

​On Dec. 18, 2015, the Consolidated Appropriations Act amended the Internal Code, eliminating the option for colleges and universities to report amounts billed for qualified tuition and expenses in Box 2 of IRS Form 1098-T which colleges and universities must issue each year to their students. The new requirement was made effective as of Jan. 1, 2016

The National Association of College and University Business Officers has raised concerns with the IRS about the technical challenges institutions face in satisfying the new reporting requirements.​

UPDATE: The IRS announced April 27 that penalties will not be imposed on educational institutions that file Form 1098-T for 2016 reporting the aggregate amount billed for qualified tuition and related expenses rather than the aggregate amount of payments received. In its announcement, the IRS noted that a number of institutions advised the IRS that implementation would require computer software reprogramming and other changes that cannot be implemented in time.

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