Section 1 Short title
This Act may be cited as the “Higher Education Tax Benefit Compliance Improvement Act”.
Higher Education Tax Benefit Compliance Improvement Act
A BILL
To amend the Internal Revenue Code of 1986 to improve compliance in higher education tax benefits.
Sec. 2 Waiver of penalties for certain failures relating to information returns for higher education tuition and related expenses
In general— Section 6724 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
“(f) Special rules for returns related to higher education tuition and related expenses—Section 6721 shall not apply to any failure by an eligible educational institution (as defined in section 25A) to provide the TIN of an individual described in section 6050S(b)(2)(A) on any information return described in subsection (d)(1)(B)(xii) if the person required to file the return certifies under penalty of perjury that such person has complied with standards promulgated by the Secretary for obtaining the individual's TIN, unless it is shown that such certification is materially untrue.”
Effective date— The amendment made by this section shall apply to returns filed after the date of the enactment of this Act.
Sec. 3 Payee statement required to claim certain education tax benefits
American Opportunity credit, Hope Scholarship Credit, and Lifetime Learning Credit—
In general— Subsection (g) of section 25A of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(8) Payee statement requirement—No credit shall be allowed under this section for any qualified tuition and related expenses paid by the taxpayer unless—
“(A) the taxpayer has received a statement provided under section 6050S(d) which contains the TIN of the individual for whom a payment of qualified tuition and related expenses was made, or
“(B) in any case in which—
“(i) the qualified tuition and related expenses are for a course for which academic credit is not offered by the eligible educational institution, or
“(ii) the eligible educational institution does not provide the taxpayer with a statement described in subparagraph (A) with respect to such qualified tuition and related expenses,”
Conforming amendment— Paragraph (3) of section 25A(g) of such Code is amended by adding at the end the following flush sentence:
Deduction for qualified tuition and related expenses—
In general— Subsection (d) of section 222 of the Internal Revenue Code of 1986 is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:
“(6) Payee statement requirement—No deduction shall be allowed under this section for any qualified tuition and related expenses paid by the taxpayer unless—
“(A) the taxpayer has received a statement provided under section 6050S(d) which contains the TIN of the individual to whom a payment of qualified tuition and related expenses was made, or
“(B) in any case in which—
“(i) the qualified tuition and related expenses are for a course for which academic credit is not offered by the eligible educational institution, or
“(ii) the eligible educational institution does not provide the taxpayer with a statement described in subparagraph (A) with respect to such qualified tuition and related expenses,”
Conforming amendment— Paragraph (3) of section 222(c) of such Code is amended by adding at the end the following sentence: “For purposes of paragraph (6), a statement described in paragraph (6)(A) which is received by such individual shall be treated as received by such other taxpayer.”.
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.