Sending Tax Returns

<p>I am in the process of sending tax returns to several different schools and IDOC. To some degree, this seems pointless, because all of the information and more is included in the FAFSA and CSS Profile. But what is really bothering me is that this seems like it really creates a high risk for identity theft: creating paper copies of many documents with SSN and other private information and sending them all over the country. All that it would take is one corrupt employee in a financial aid office to start stealing SSNs ... and who knows what kinds of controls are in place in a typical college Financial aid office. How long are the tax documents kept and are they properly shredded? Am I being paranoid here? </p>

<p>What I am really wondering is why they don't wait until a student is admitted and has decided to attend before requesting tax documents. At this point, if the tax returns were significantly different than the FAFSA and CSS Profile, they could adjust accordingly. Instead, it seems like they all are willing to create a big security/privacy risk simply to verify information before it's even necessary.</p>

<p>Sorry if this has been beat to death earlier, but I'd be interested in knowing if I am alone in this concern.</p>

<p>-Mike</p>

<p>It’s not pointless. They have to make sure you weren’t lying on the FAFSA/PROFILE. And every college I applied to asked for my SSN. They were also on teacher recommendations I sent out among other things. I’m pretty sure they could access your SSN and other data without needing tax returns.</p>

<p>I have a related question- what’s to stop someone from making a ‘fake’ return and sending it in? For example, sending a return to the colleges with fake numbers and then filing a real one with the IRS?</p>

<p>I can see why they need to process, and verify, those FA apps early. Students need to know what their FA awards are going to be before they can make a decision as to where to enroll. When they do that they are also turning down all their other options. If they did that, and then upon submittting their tax documents for verification to their chosen school discovered that a significant adjustment was made in their aid award that might have been determinative in the choice to attend that school… well, then they’ve already closed all those other doors at other schools. That could be disastrous.</p>

<p>I would assume schools have procedures in place for security. As to the possibility of a rogue employee, that’s pretty much possible no matter where you do business. If it’s any comfort, in the following years you’ll only be dealing with one school.</p>

<p>Hmm … not sure I understand the need to verify early. If you have filled out the FAFSA (and corrections) and CSS Profile accurately, then there should not be a big discrepancy between the documents filed and your tax return. Wash U. appears to be able to provide a need-based financial aid award without seeing my tax returns - why can’t other schools?</p>

<p>With regards to security procedures, I hand-delivered my tax return to one school in the area we live in. They took it out of the sealed envelope I brought it in, stapled it and dropped it in the office In Box sitting on the counter. Any random person coming into the office could have seen it.</p>

<p>I think many people do not fill out their forms accurately. Probably a lot of time (judging from posts here on CC) that’s because parents leave the task to their kids. Kids may do the best they can, but often don’t really understand the questions. I agree it’s a shame parents do that, but it happens all the time. I’d hate to see kids penalized by doing their best with a job they shouldn’t have to do (in my opinion) in the first place.</p>

<p>Anyway, have you tried asking at any of the schools if you could refrain from submitting the stuff until after you knew your kid would be attending there due to concerns about security? Or perhaps you could delete all but the last four digits of your SSN on the documents you submit to them. I don’t know that it would help, but I’m certain you’re not the first person to raise the issue. If they can’t accomodate you, then at least perhaps they could clarify their procedures.</p>

<p>Occasionally parents bring this isssue up on this board. You are not alone.</p>

<p>An additional comment - I agree that the SSN is used frequently on all kinds of documents in the college application process. This is something that should really be changed. Students applying to colleges should be able to get some sort of ID specifically for applying to colleges. Perhaps it could be tied into the common app or something like that. Then, when there was a genuine need to know the SSN, it could be obtained by a specific request. I just don’t see why applying to college should require providing your SSN in so many places/forms when all they really need is a unique id.</p>

<p>Good point about kids trying to fill out the forms - there’s no way any (dependent) student would stand a chance of doing the forms correctly. </p>

<p>I have asked one of the schools in question if the tax forms were needed before an admission. The rest had deadlines so I gritted my teeth and I am sending in …</p>

<p>I read where one student didn’t know his father was making 10.000 more than the year before taxes and got most of his aid taken away that he had received going on the old tax forms.
I personally find some of the questions confusing at times, I would never let my child, no matter how smart, fill them out without me looking at them. The schools have to have hard numbers to give aid. Even at my son’s school, his grant went down 1000. from his previous number when the final tax forms were sent. (previous was based on year before) I did send a corrections, but it took them time to update it. They seemed to wait for the tax return.</p>

<p>

I’ve wondered that myself. A lot of people do their own these days using something like Turbotax. What’s to stop them from making one up? If the only verification done is a copy the taxpayer send in himself, I can see where they are going to need to change the system.</p>

<p>^^ That’s what I meant. In no way am I advocating doing that (it’s illegal in so many ways, and if you’re discovered, you could even be kicked out of your college and blackballed…) but I think that’s the only disincentive to do it. I could see less than ethical (and daring) people printing up a whole fake tax return and sending that one in to schools and IDOC and then doing the ‘real’ one and sending that one into the IRS. I think schools/IDOC should have to see W2s.</p>

<p>mimimom…W-2s and 1099s, etc are just as easily “faked” as any of the other forms.</p>

<p>ANYTHING can be faked. Yes, it stinks, but it’s true. We just have to hope that this person gets caught most of the time. Doesn’t always happen. Cheaters often win. But…?</p>

<p>As for someone’s comment that things “don’t change much” from estimates (paraphrased)…why do they need the form : Some of us change a LOT. We might have NO CLUE what your end result takes are going to look like, and they vary wildly from one year to the other. If your one job, one W-2, one paycheck, no big changes, no business, etc…it might not change much. But that’s not true of MANY people.</p>

<p>As to why we have to send it in, with sensitive information - well, that’s WHY we’re issued SS numbers, for identification. It’s the ONLY individual identifier. If we want THEIR money, we have to follow their rules. You have to provide all this for any loan, certainly you’re willing to provide it for a grant/scholarship. </p>

<p>I’m sure they take every precaution with your paperwork. And I’m equally sure that mistakes happen, carelessness, theft. But…? The alternative is to NOT file for aid.</p>

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<p>Folks…it’s fraud to do this. Remember, your employer ID number is ON your W-2 forms. EVERYTHING these days is computerized. When we use tax prep software, we don’t even have to hand enter the “stuff” from our W-2…we just put in the employer number and poof…it’s there.</p>

<p>Would you want to risk losing your financial aid and possibly your admissions to a school? The most important thing about these forms…complete them honestly and consistently. Your AGI on the FAFSA should be the SAME AGI on your Profile AND your tax returns…and this should all come from your W-2, 1099 forms.</p>

<p>We’re not advocating doing it. More concerned with those people out there who choose not to follow rules. If the only verification of what you put on a FAFSA is a copy of the return that you send in, that’s not very reliable. What’s to stop a person who has a W-2 with very little income on it from preparing a return with that W-2 only, then preparing the FAFSA with that income? If verified, they send in a copy of the W-2 and the return, but not all the other income that does not appear on the fake return. </p>

<p>I say this because I know people who have done it. I think there should be better controls.</p>

<p>I’m sure there are dishonest folks out there. That doesn’t mean that they can’t be “found out”. There have been instances posted HERE where folks have stated that their FAFSA was changed by the school. Where did the school get that info? Perhaps they sent their returns…I don’t know.</p>

<p>Personally, I think we need to stop thinking of ways to game the system and be dishonest. This board should not be a forum for promoting…even by discussion…ways to be dishonest when completing any kind of form.</p>

<p>Just my humble opinion.</p>

<p>Not to be argumentative, but the only good argument I’ve seen so far for requiring tax returns before making any award is that students (instead of parents) filling out the financial forms may not understand them and therefore make mistakes.</p>

<p>With regards to information changing - yes, that’s true, but you have to correct FAFSA and PROFILE anyways if you estimated incorrectly. That can be done without sending the tax forms to every school.</p>

<p>With regards to the SSN being the “only” unique identifier - it’s the government’s unique identifier, but any organization can provide it’s own unique identifier and then cross-reference that to the SSN to limit the need to ask for the SSN on many forms. One school did just that - we got an applicant id when applying and then were allowed to use that instead of SSN on scholarship applications. </p>

<p>One approach I would support would be allowing me to submit my tax returns electronically (as PDF files) to a clearing house like IDOC over a secure connection and then have the schools access them electronically. This seems better than sending paper copies to a bunch of financial aid offices.</p>

<p>Finally, note that Washington U. is able to provide a need-based award without asking for tax returns or my SSN (so far). Their Family Financial Profile was very simple. If they can do it, the other schools can too.</p>

<p>I have a question regarding the IDOC process.
What if your parent doesn’t get a return, and they actually pay the government each year? What do you send?</p>

<p>“shay” … a “return” is not the same thing as a REFUND (I assume that’s what you mean, I know of another poster who also got these confused).</p>

<p>A “return” is the actual paperwork you file and send to the IRS (or state). The “return” is called form 1040, 1040a, 1040EZ, etc. Mention those numbers to your parents and they’ll be familiar with them.</p>

<p>And just to add fuel to mikes9’s fire…I sent (by USPS certifed mail) copies of tax returns, all schedules, W-2s and 1099s and more, directly to one of S’s schools on Feb 9th. The package still has not been received. We and the school and the USPS assumed initially that the delay was due to the weather events on the east coast that week. A similar package was mailed the same day to IDOC and was received in 2 days. At this point I’m assuming that the package is lost and I will be resending all tax docs tomorrow. But one does wonder where all of my personal financial information will end up? Destroyed or in enemy hands? Wish all schools used IDOC and really wish we could send the info electronically, as previously suggested.</p>

<p>Okay, I believe I got those mixed up.
Also, I was selected for “verification.” Do I have to fill out that verification form? I was unfamiliar with the whole IDOC process until about 2 days ago when I found out I had to do it!</p>