The new DRT code of 07 has caused some confusion in the aid community about the documentation requirements when an IRS Request Flag of 07 is present beginning with the 18-19 ISIR. Based on CampusLogic interpretation of verification requirements coupled with guidance from the Department of Education, when an 07 code is present the school only needs to collect a signed 1040X. The presence of an 02 IRS Request Flag and or IRS data field flags of 1 can be used in place of the tax transcript.
Previous guidance had stated that schools needed to collect both the original tax transcript and the signed 1040X. That was updated on 11/9/2017 by the policy team at the Department of Education.