Colleges and universities use IRS Form 1098-T to report tuition payments and qualified education expenses. The form requires schools to include the student’s name, address, enrollment status, and taxpayer identification number (TIN).
The IRS imposes penalties for incorrect or missing TINs on most tax forms. However, there is an exception for Form 1098-T. If an educational institution makes a good-faith effort to request the student’s TIN and certifies that request under penalty of perjury, no penalty will apply for a missing TIN.
This rule helps protect schools from being fined when students fail to provide a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). The IRS requires institutions to follow the standards in Section 6050S, which include properly requesting the TIN from the student and documenting compliance.
Why the Student TIN Matters
The student’s TIN is essential because it allows the IRS to verify eligibility for education tax credits. Without a correct TIN, a student may have difficulty claiming the American Opportunity Credit or the Lifetime Learning Credit.
How 1099FIRE Can Help
At 1099FIRE, we provide software and services to simplify IRS compliance for schools and businesses. We can:
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Generate and e-file 1098-T forms with the IRS.
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Help institutions remain compliant with TIN reporting standards.
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Assist with bulk TIN matching to reduce errors and avoid penalties.
Contact our team at info@1099fire.com or call 480-706-6474 to learn more about how we can manage your Form 1098-T reporting.