State Chancellor’s Office Issues New Legal Opinion Regarding IRS Penalties for Incorrect or Missing Student Taxpayer Identification Numbers on IRS Form 1098-T (CC)

On September 16, 2013, the State Chancellor’s Office Legal Division issued an analysis to its Student Services and Special Programs Division related to IRS penalty notices that some community college districts are receiving in connection with the federal Hope Scholarship Credit. Chancellor’s Office Legal Opinion 13-05 addresses what information districts are required to provide for purposes of completing IRS Form 1098-T, potential penalties for failing to provide correct student taxpayer identification numbers, the possibility of waiving IRS penalties, and the effect of providing the information to the IRS under various student privacy laws.