Instructions for Forms 1098-E and 1098-T (2007)

Instructions for Forms 1098-E and 1098-T - Introductory Material

This is archived information that pertains only to the 2006 Tax Year. If you
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Table of Contents

Reminder

Reminder

General instructions. In addition to these specific instructions, you should also use the 2007 General Instructions for Forms 1099, 1098, 5498, and W-2G. Those general instructions include information about:

Electronic reporting requirements
Penalties
Who must file (nominee/middleman)
When and where to file
Taxpayer identification numbers
Statements to recipients
Corrected and void returns
Other general topics

You can get the general instructions from the IRS website at www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).

Form W-9S. You may use Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification, to obtain the student's or borrower's name, address, social security number, and student loan certification to be used when filing Form 1098-E or 1098-T. Use of Form W-9S is optional; you may collect the information using your own forms, such as financial aid applications, and procedures. You may collect the student's or borrower's information on paper or electronically.

Electronic submission of Form W-9S. An educational institution, insurer, or lender may establish a system for students and borrowers to submit Form W-9S electronically, including by fax. Generally, the electronic system must:

Ensure the information received is the information sent and document all occasions of user access that result in the submission.
Make reasonably certain the person accessing the system and submitting the form is the person identified on
Form W-9S.
Provide you with the same information as the paper
Form W-9S.
Be able to supply a hard copy of the electronic
Form W-9S if the Internal Revenue Service requests it.

Also, if an electronic Form W-9S is used to obtain the borrower's certification that all the loan proceeds are solely used to pay qualified higher education expenses, your electronic system must require, as the final entry in the submission, an electronic signature by the borrower whose name is on Form W-9S. The signature authenticates and verifies the submission. See Announcement 98-27, which is on page 30 of Internal Revenue Bulletin 1998-15 at www.irs.gov/pub/irs-irbs/irb98-15.pdf.

Electronic/Magnetic media reporting. For Forms 1098-E and 1098-T, you are required to file magnetically or electronically if filing 250 or more returns. See part F in the 2007 General Instructions for Forms 1099, 1098, 5498, and W-2G for more information.

Penalties. For Forms 1098-E and 1098-T, penalties may be imposed for failure to file or failure to furnish correct forms. However, under certain circumstances, the penalties may be waived. See part O in the 2007 General Instructions for Forms 1099, 1098, 5498, and W-2G for more information.