CPS to Reprocess and Void 2018-2019 ISIR Transactions Due to Incorrect Tax Year Data Transferred from IRS

On October 24, 2018 the Department of Education released an Electronic  Announcement that addressed a resolution to a known issue that occurred with the DRT transfer process. We encourage all school partners to review the Electronic Announcement to ensure  you are aware of the issue and how it impacts your students as well as any resolution that will be required.


Background:


Impacted students, are those who attempted to file a correction to their 2018–19 FAFSA between September 30, 2018 and October 4, 2018 and used the IRS Data Retrieval Tool (IRS DRT). This issue caused the  transfer of 2017 tax year data to corrected transactions instead of the appropriate 2016 tax year data.


CPS Resolution: 


CPS will conduct a reprocessing of impacted students on October 26,2018. 


Per the Electronic Announcement: 


“The CPS reprocessing on October 26, 2018 will address any 2018–19 records that transferred IRS data to a correction between September 30 and October 4, 2018. The reprocessed transactions are intended solely to alert impacted applicants that action is required; the CPS reprocessing will not modify the financial information transferred from the IRS.


Federal Student Aid (FSA) will also send an email to impacted students explaining the reprocessing and recommending that the applicant access the reprocessed transaction, transfer tax information again using the IRS DRT, make any other corrections needed originally when the issue occurred, and submit the correction for processing.


After reprocessing is complete, CPS will void all previous transactions that have the incorrect data for applicants impacted by this issue. This additional action will help ensure applicants do not submit corrections to earlier transactions which would result in the incorrect tax year information carrying forward to new transactions.”


Schools have several methods available to identify impacted students per the Electronic Announcement they include:


  • Reprocessed Institutional Student  Information Records (ISIRs) will be sent under the IGSG19OP message class.
  • SARs and ISIRs will include SAR comment code 172, which states “This SAR was produced because we processed a change to your information based on information reported to us by another agency or as a  result of a processing system change. Review your SAR to see what effect, if any, this change has had on your application, and call 1-800-4-FED-AID  (1-800-433-3243) if you have any questions.”
  • ISIRs produced as a result of the reprocessing will include a value of “04” for the Reprocessed Reason Code (ISIR field #248).
  • The FAA Information page in Student Inquiry on  the FAA Access to CPS Online Web site will display “04 – Reprocessed  for wrong tax year transferred from IRS DRT” for the Reprocessing Code for the transaction resulting from the reprocessing. The Reprocessing Reason Code 04 description will not display in FAA Access to CPS Online until after we implement updates to the site in a future release.


StudentForms impact: 


At this point in time, CampusLogic does not  anticipate making any changes to its current logic or functionality based on this announcement. Should an institution determine that it needs additional information from a reprocessed student, the institution can utilize the request information functionality within  StudentForms to request the necessary documentation. Please reference identification methods provided in the Electronic Announcement to determine impacted students.


Should you have any questions please contact us  at Support@CampusLogic.com


Please note, this announcement is not meant as regulatory guidance or advice to a school. It is the responsibility of the institution to ensure that the implementation, configuration, updates to, and utilization of the tool set purchased from CampusLogic are meeting Federal and State regulatory requirements/sub regulatory guidance, institutional polices, and accrediting body standards and requirements.