# Prop. Treas. Reg. § 1.6050S-1: Information reporting for qualified tuition and related expenses. Proposed regulation, not in force. REG-131418-14, 81 FR 50657, published 2016-08-02 . Interprets 26 U.S.C. § 6050S. Par. 6. Section 1.6050S-0 is amended by: 1. Revising the entry for § 1.6050S-1(a)(2)(i). 2. Removing the entries for § 1.6050S-1(a)(2)(iii) and (iv). 3. Revising the entries for § 1.6050S-1(b)(2) introductory text and (b)(2)(ii). 4. Revising the entry for § 1.6050S-1(b)(3) introductory text. 5. Removing the entries for § 1.6050S-1(b)(3)(iii), (iv) and (v). 6. Revising the entry for § 1.6050S-1(b)(4). 7. Removing the entry for § 1.6050S-1(b)(5). 8. Redesignating the entry for § 1.6050S-1(b)(6) as § 1.6050S-1(b)(5). 9. Adding entries for § 1.6050S-1(c)(1)(i), (ii) and (iii). 10. Removing the entry for § 1.6050S-1(c)(2)(ii). 11. Redesignating the entry for § 1.6050S-1(c)(2)(iii) as § 1.6050S-1(c)(2)(ii). 12. Redesignating the entries for § 1.6050S-1(e) and § 1.6050S-1(f) as § 1.6050S-1(f) and § 1.6050S-1(g), respectively. 13. Adding a new entry for § 1.6050S-1(e). 14. Revising the newly redesignated entry for § 1.6050S-1(f)(4). 15. Adding a new entry for § 1.6050S-1(f)(5). The revisions and additions to read as follows: § 1.6050S-0 Table of contents. § 1.6050S-1 Information reporting for qualified tuition and related expenses. (a) * * * (2) * * * (i) No reporting of amounts for books, supplies and equipment unless the amount is a fee required to be paid to the institution. (A) In general. (B) Examples. (b) * * * (2) Information reporting requirements for educational institutions for qualified tuition and related expenses. (ii) Information included on return. (A) Name, address and TIN of institution (B) Name address and TIN of individual enrolled at institution (C) Amount of payments of qualified tuition and related expenses (D) Indication of whether payments pertain to academic period commencing in first three months of following calendar year (E) Amount of scholarships or grants (F) Amount of reimbursements or refunds pertaining to expenses reported in prior year (G) Amount of reductions of scholarships or grants (H) Statement of whether individual enrolled for at least half of normal full-time work load (I) Number of months during which individual enrolled for normal full-time workload (J) Statement of individual's enrollment in graduate-level program (K) Any additional information required by Form 1098-T or instructions (3) Requirements for insurers. (4) Time and place for filing return. (i) In general. (ii) Extensions of time. (c) * * * (1) * * * (i) Required information. (ii) Legend identifying statement as important tax information. (iii) Instructions. (A) Statement of payments made or reimbursements or refunds made. (B) Statement regarding extent of individual's eligibility for credit under section 25A. (C) Statement regarding reduction in tax credit due to grant or scholarship. (D) Statement notifying individual of ability to allocate scholarship or grant. (E) Statement notifying individual of consequences of refunds, reimbursements. reductions in tuition charges or grants or scholarships for prior taxable year. (F) Statement informing individual of consequences of reimbursement or refund by institution or insurer. (G) Statement notifying individual to consult forms and publications of IRS. (H) Name, address and phone number of educational institution or insurer. (e) Definitions. (1) Administered and processed. (i) In general. (ii) Examples. (2) Cost of attendance. (f) * * * (4) No penalty imposed on eligible educational institutions that certify compliance with paragraph (f)(3) of this section at the time of filing the return. (5) Failure to furnish TIN. Par. 7. Section 1.6050S-1 is amended by: 1. Revising paragraph (a)(2)(i) and removing paragraphs (a)(2)(iii) and (iv). 2. Revising paragraphs (b)(1), (b)(2)(i), and (b)(2)(ii)(D), (E), (G) and (H). 3. Redesignating paragraphs (b)(2)(ii)(I) and (J) as paragraphs (b)(2)(ii)(J) and (K), respectively, and adding a new paragraph (b)(2)(ii)(I). 4. Revising newly redesignated paragraph (b)(2)(ii)(J). 5. Revising paragraphs (b)(2)(iv), (v), (vi) and Example 1, 2, 3, and 4 in paragraph (b)(2)(vii). 6. In paragraph (b)(2)(vii), adding Example 5 and 6. 7. Removing paragraph (b)(3) and redesignating paragraphs (b)(4), (5) and (6) as paragraphs (b)(3), (4) and (5), respectively. 8. Revising newly redesignated paragraph (b)(4)(i). 9. Removing newly redesignated paragraph (b)(4)(ii) and further redesignating paragraph (b)(4)(iii) as paragraph (b)(4)(ii). 10. Revising paragraphs (c)(1)(iii)(A), (B) and (C). 11. Redesignating paragraphs (c)(1)(iii)(D), (E), (F), and (G) as paragraphs (c)(1)(iii)(E), (F), (G), and (H), respectively. 12. Revising newly re-designated paragraphs (c)(1)(iii)(E), (F), (G), and (H). 13. Adding a new paragraph (c)(1)(iii)(D). 14. Revising paragraph (c)(2)(i). 15. Removing paragraph (c)(2)(ii) and redesignating paragraph (c)(2)(iii) as paragraph (c)(2)(ii). 16. Redesignating paragraphs (e) and (f) as paragraphs (f) and (g), respectively. 17. Adding a new paragraph (e). 18. In newly redesignated paragraph (f): i. Revising paragraph (f)(3)(ii). ii. In paragraph (f)(3)(iii), removing the language “(e)(3)(iii)” and adding “(f)(3)(iii)” in its place. iii. Further redesignating paragraph (f)(4) as paragraph (f)(5). iv. Adding new paragraph (f)(4). 19. Revising newly redesignated paragraph (g). The revisions and additions read as follows: (a) * * * (2) * * * (i) No reporting of amounts for books, supplies and equipment unless the amount is a fee required to be paid to the institution —(A) In general. The information reporting requirements of this section do not apply to amounts paid for books, supplies, and equipment unless the amount is a fee that must be paid to the eligible educational institution as a condition of enrollment or attendance under § 1.25A-2(d)(2)(ii). (B) Examples. The following examples illustrates the rules of this paragraph (a)(2): Example 1. First-year students at College W are required to obtain books and other materials used in its mandatory first-year curriculum. The books and other materials are not required to be purchased from College W and may be borrowed from other students or purchased from off-campus bookstores, as well as from College W's bookstore. College W bills students for any books and materials purchased from College W's bookstore. Because the first-year books and materials may be purchased from any vendor, the amount is not a fee that must be paid to the eligible educational institution as a condition of enrollment or attendance and, therefore, is not subject to reporting under paragraph (a)(2)(i) of this section. No amount is reportable even if a first-year student pays College W for the required books and other materials purchased from College W's bookstore. Example 2. Assume the same facts as Example 1 of this paragraph (a)(2), except College W furnishes the books and other materials to each first-year student and the books may not be borrowed or purchased from other sources. College W charges a separate fee for books and materials to all first-year students for these items as part of the bill required to be paid to attend the institution. Under paragraph (a)(2)(i) of this section, because the amount is a fee that must be paid to the eligible educational institution as a condition of enrollment or attendance, the fee, if paid by or on behalf of the student, must be reported on the Form 1098-T as part of the qualified tuition and related expenses. * * * * * (b) Requirement to file return —(1) In general. Eligible educational institutions must report the information described in paragraph (b)(2) of this section, which requires institutions to report, among other information, the amount of payments received during the calendar year for qualified tuition and related expenses. Institutions must report separately adjustments made during the calendar year that relate to payments received for qualified tuition and related expenses that were reported for a prior calendar year. For purposes of paragraph (b)(2) of this section, an adjustment made to payments received means a reimbursement or refund. Insurers must report the information described in paragraph (b)(3) of this section. (2) Information reporting requirements —(i) In general. Except as provided in paragraph (a)(2) of this section (regarding exceptions where no information reporting is required), an eligible educational institution must file an information return with the IRS on Form 1098-T, “Tuition Statement,” with respect to each individual enrolled (as determined in paragraph (d)(1) of this section) for an academic period beginning during the calendar year (including an academic period beginning during the first three months of the next calendar year) or during a prior calendar year and for whom a transaction described in paragraph (b)(2)(ii)(C), (E), (F), or (G) of this section is made during the calendar year. An eligible educational institution may use a substitute Form 1098-T if the substitute form complies with applicable revenue procedures relating to substitute forms (see § 601.601(d)(2) of this chapter). (ii) * * * (D) An indication by the institution whether any payments received for qualified tuition and related expenses reported for the calendar year relate to an academic period that begins during the first three months of the next calendar year and the amount of such payments; (E) The amount of any scholarships or grants for the payment of the individual's cost of attendance (as defined in paragraph (e)(2) of this section) that the institution administered and processed (as defined in paragraph (e)(1) of this section) during the calendar year; * * * * * (G) The amount of any reductions to the amount of scholarships or grants for the payment of the individual's cost of attendance (as defined in paragraph (e)(2) of this section) that were reported by the eligible educational institution with respect to the individual for a prior calendar year; (H) A statement or other indication showing whether the individual was enrolled for at least half of the normal full-time work load for the course of study the individual is pursuing for at least one academic period that begins during the calendar year (see section 25A and the regulations thereunder for more information regarding workload requirements); (I) A statement or other indication showing the number of months (for this purpose, one day in a month is treated as an entire month) during the calendar year that the individual was enrolled for the normal full-time workload for the course of study the individual is pursuing at the institution; (J) A statement or other indication showing whether the individual was enrolled in a program leading to a graduate-level degree, graduate-level certificate, or other recognized graduate-level educational credential, unless the student is enrolled in both a graduate-level program and an undergraduate level program during the same calendar year at the same institution in which case no statement or indication is required; and * * * * * (iv) Separate reporting of reimbursements or refunds of payments of qualified tuition and related expenses that were reported for a prior calendar year. An institution must separately report on Form 1098-T any reimbursements or refunds (as defined in paragraph (b)(2)(vi) of this section) made during the current calendar year that relate to payments of qualified tuition and related expenses that were reported by the institution for a prior calendar year. Such reimbursements or refunds are not netted against the payments received for qualified tuition and related expenses during the current calendar year. (v) Payments received for qualified tuition and related expenses determined. For purposes of determining the amount of payments received for qualified tuition and related expenses during a calendar year, payments received with respect to an individual during the calendar year from any source (except for any scholarship or grant that, by its terms, must be applied to expenses other than qualified tuition and related expenses, such as room and board) are treated first as payments of qualified tuition and related expenses up to the total amount billed by the institution for qualified tuition and related expenses for enrollment during the calendar year, and then as payments of expenses other than qualified tuition and related expenses for enrollment during the calendar year. Payments received with respect to an amount billed for enrollment during an academic period beginning in the first 3 months of the following calendar year in which the payment is made are treated as payment of qualified tuition and related expenses in the calendar year during which the payment is received by the institution. For purposes of this section, a payment includes any positive account balance (such as any reimbursement or refund credited to an individual's account) that an institution applies toward current charges. (vi) Reimbursements or refunds of payments for qualified tuition and related expenses determined. For purposes of determining the amount of reimbursements or refunds made of payments received for qualified tuition and related expenses, any reimbursement or refund made with respect to an individual during a calendar year (except for any refund of a scholarship or grant that, by its terms, was required to be applied to expenses other than qualified tuition and related expenses, such as room and board) is treated as a reimbursement or refund of payments for qualified tuition and related expenses up to the amount of any reduction in charges for qualified tuition and related expenses. For purposes of this section, a reimbursement or refund includes amounts that an institution credits to an individual's account, as well as amounts disbursed to, or on behalf of, the individual. (vii) * * * Example 1. (i) Student A enrolls in University X as a full-time student for the 2016 fall semester. In early August 2016, University X sends a bill to Student A for $16,000 for the 2016 fall semester breaking out the current charges as follows: $10,000 for qualified tuition and related expenses and $6,000 for room and board. In late August 2016, Student A pays $11,000 to University X, leaving a remaining balance to be paid of $5,000. In early September 2016, Student A drops to half-time enrollment for the 2016 fall semester but remains in on-campus housing. In late September 2016, University X credits $5,000 to Student A's account, reflecting a $5,000 reduction in the $10,000 charge for qualified tuition and related expenses as a result of dropping from full-time to half-time status. No other transactions occur with respect to Student A's account with University X. In late September 2016, University X applies the $5,000 credit toward Student A's current charges, eliminating any outstanding balance on Student A's account with University X. (ii) Under paragraph (b)(2)(v) of this section, the $11,000 payment is treated as a payment of qualified tuition and related expenses up to the $10,000 billed for qualified tuition and related expenses. Under paragraph (b)(2)(vi) of this section, the $5,000 credited to the student's account is treated as a reimbursement or refund of payments for qualified tuition and related expenses because there is a reduction in charges for qualified tuition and related expenses equal to the $5,000 credit due to Student A dropping to half-time for the 2016 fall semester. Under paragraph (b)(2)(iii) of this section, the $10,000 payment received for qualified tuition and related expenses during 2016 is reduced by the $5,000 reimbursement or refund of payments received for qualified tuition and related expenses during 2016. Therefore, University X is required to report $5,000 of payments received for qualified tuition and related expenses during 2016 on a 2016 Form 1098-T. Example 2. (i) The facts are the same as in Example 1 of this paragraph (b)(2)(vii), except that Student A pays the full $16,000 in late August 2016. In late September 2016, University X reduces the tuition charges by $5,000 and issues a $5,000 refund to Student A. (ii) Under paragraph (b)(2)(v) of this section, the $16,000 payment is treated as a payment of qualified tuition and related expenses up to the $10,000 billed for qualified tuition and related expenses. Under paragraph (b)(2)(vi) of this section, the $5,000 refund is treated as reimbursement or refund of payments for qualified tuition and related expenses because University X reduced the charges for qualified tuition and related expenses equal to the $5,000 refund disbursed to the student due to dropping to half-time for the 2016 fall semester. Under paragraph (b)(2)(iii) of this section, the $10,000 payment received for qualified tuition and related expenses during 2016 is reduced by the $5,000 reimbursement or refund of payments received for qualified tuition and related expenses during 2016. Therefore, University X is required to report $5,000 of payments received for qualified tuition and related expenses during 2016 on a 2016 Form 1098-T. Example 3. (i) The facts are the same as in Example 1 of this paragraph (b)(2)(vii), except that Student A is enrolled full-time, and, in early September 2016, Student A decides to live at home with her parents. In late September 2016, University X adjusts Student A's account to eliminate room and board charges and issues a $1,000 refund to Student A. (ii) Under paragraph (b)(2)(v) of this section, the $11,000 payment is treated as a payment of qualified tuition and related expenses up to the $10,000 billed for qualified tuition and related expenses. Under paragraph (b)(2)(vi) of this section, the $1,000 refund is not treated as reimbursement or refund of payments for qualified tuition and related expenses because University X has reduced room and board charges for the 2016 fall semester, rather than reducing charges for qualified tuition and related expenses for the 2016 fall semester. Therefore, under paragraph (b)(2)(iii) of this section, University X is required to report $10,000 of payments received for qualified tuition and related expenses during 2016 on a 2016 Form 1098-T. Example 4. (i) Student B enrolls in College Y as a full-time student for the 2017 spring semester. In early December 2016, College Y sends a bill to Student B for $16,000 for the 2017 spring semester breaking out current charges as follows: $10,000 for qualified tuition and related expenses and $6,000 for room and board. In late December 2016, College Y receives a payment of $16,000 from Student B. In mid-January 2017, after the 2017 spring semester classes begin, Student B drops to half-time enrollment. In mid-January 2017, College Y credits Student B's account with $5,000, reflecting a $5,000 reduction in charges for qualified tuition and related expenses, but does not issue a refund to Student B. Thereafter, Student B's account reflects a positive balance of $5,000 due to the credit and there is no other activity on Student B's account until early August when College Y sends a bill for $16,000 for the 2017 fall semester breaking out the current charges as follows: $10,000 for qualified tuition and related expenses and $6,000 for room and board. In early September 2017, College Y applies the $5,000 positive account balance (credit) toward Student B's $16,000 bill for the 2017 fall semester. In late September 2017, Student B pays $6,000 towards the charges for the 2017 fall semester. (ii) For calendar year 2016, under paragraph (b)(2)(v) of this section, $10,000 of the $16,000 payment received by College Y in December 2016 is treated as a payment of qualified tuition and related expenses. Therefore, College Y is required to report $10,000 of payments received for qualified tuition and related expenses during 2016 on a 2016 Form 1098-T. In addition, College Y is required to indicate that $10,000 of the payments reported on the 2016 Form 1098-T relate to an academic period that begins during the first three months of the next calendar year. (iii) Under paragraph (b)(2)(vi) of this section, the $5,000 credited to Student B's account in January 2017 is treated as a reimbursement or refund of qualified tuition and related expenses because there is a reduction in charges for qualified tuition and related expenses of $5,000 for the 2017 spring semester. Under paragraph (b)(2)(iv) of this section, however, this reduction is a reimbursement or refund of qualified tuition and related expenses made during 2017 and, therefore, must be separately reported on the 2017 Form 1098-T. The 2016 Form 1098-T reporting $10,000 of qualified tuition and related expenses for 2016 is unchanged. (iv) Under paragraph (b)(2)(v) of this section, the $5,000 positive account balance that is applied toward charges for the 2017 fall semester is treated as a payment made in 2017. Therefore, College Y received total payments of $11,000 during 2017 (the $5,000 credit plus the $6,000 payment). Under paragraph (b)(2)(v) of this section, the $11,000 of total payments made during 2017 are treated as a payment of qualified tuition and related expenses up to the $10,000 billed for qualified tuition and related expenses for the 2017 fall semester. Therefore, for 2017, College Y is required to report $10,000 of payments received for qualified tuition and related expenses during 2017 and a $5,000 refund of payments of qualified tuition and related expenses reported for 2016 on the 2017 Form 1098-T. Example 5. (i) Student C enrolls in College Z as a full-time student the 2016 fall semester and the 2017 spring semester. Student C was not enrolled in, and did not attend, any institution of higher education prior to the 2016 fall semester. In August 2016, College Z sends a bill to Student C for $11,000 for the 2016 fall semester. In December 2016, College Z sends a bill to Student C for $11,000 for the 2017 spring semesters. Qualified tuition and related expenses billed for each semester is $6,000 and room and board billed for each semester is $5,000. In September 2016, College Z receives a payment of $11,000 which is applied toward the amount billed for Student C's attendance during the 2016 fall semester. In December 2016, College Z receives a payment of $4,500 which is applied toward the amount billed for Student C's attendance during the 2017 spring semester. In February 2017, College Z receives a payment of $6,500, the remainder of the amount billed for enrollment during the 2017 spring semester. (ii) On the 2016 Form 1098-T, College Z reports the payment of $10,500 of qualified tuition and related expenses determined as follows: $6,000 for the payment received in September 2016 with respect to the amount billed for qualified tuition and related expenses for the 2016 fall semester and $4,500 for the payment received in December 2016 with respect to the amount billed for qualified tuition and related expenses for the 2017 spring semester. On the 2017 Form 1098-T, College Z reports the payment of $1,500 of qualified tuition and related expenses received in February 2017 with respect to the amount billed for qualified tuition and related expenses for the 2017 spring semester. Example 6. The facts are the same as Example 5 of this paragraph (b)(2)(vii) except in January 2017 College Z receives payment of $11,000 for the entire amount billed for the 2017 spring semester. On the 2016 Form 1098-T, College Z reports the payment of $6,000 for the payment received in September 2016 with respect to the amount billed for qualified tuition and related expenses for the 2016 fall semester. On the 2017 Form 1098-T, College Z reports the payment of $6,000 of qualified tuition and related expenses received in January 2017 with respect to the amount billed for qualified tuition and related expenses for the 2017 spring semester. * * * * * (4) Time and place for filing return —(i) In general. Except as provided in paragraph (b)(4)(ii) of this section, Form 1098-T must be filed on or before February 28 (March 31 if filed electronically) of the year following the calendar year in which payments were received for qualified tuition or related expenses, or reimbursements, refunds, or reductions of such amounts were made. An institution or insurer must file Form 1098-T with the IRS according to the instructions for Form 1098-T. * * * * * (c) * * * (1) * * * (iii) * * * (A) State that the statement reports total payments received by the institution for qualified tuition and related expenses during the calendar year, or the total reimbursements or refunds made by the insurer; (B) State that, under section 25A and the regulations thereunder, the taxpayer may claim an education tax credit only with respect to qualified tuition and related expenses actually paid during the calendar year; and that the taxpayer may not be able to claim an education tax credit with respect to the entire amount of payments received for qualified tuition and related expenses reported on the Form 1098-T for the calendar year; (C) State that the amount of any scholarships or grants reported on the Form 1098-T for the calendar year and other similar amounts not reported on the Form 1098-T (because they are not administered and processed by the eligible educational institution as defined in paragraph (e)(1) of this section) that are allocated by the student to pay qualified tuition and related expenses may reduce the amount of any allowable education tax credit for the taxable year; (D) State that even if the eligible educational institution applies scholarships or grants reported on the Form 1098-T for the calendar year to qualified tuition and related expenses, the student may, for tax purposes, be able to allocate all or a portion of the scholarships or grants to expenses other than qualified tuition and related expenses (and, therefore, forego having to reduce the amount of the education tax credit the student may claim) if the terms of the scholarship or grant permit it to be used for expenses other than qualified tuition and related expenses and the student includes the amount in income on his federal income tax return. * * * * * (E) State that the amount of any reimbursements or refunds of payments received, or reductions in charges, for qualified tuition and related expenses, or any reductions to the amount of scholarships or grants, reported by the eligible educational institution with respect to the individual for a prior calendar year on Form 1098-T may affect the amount of any allowable education tax credit for the prior calendar year (and may result in an increase in tax liability for the year of the refund); (F) State that the amount of any reimbursements or refunds of qualified tuition and related expenses reported on a Form 1098-T by an eligible educational institution or insurer may reduce the amount of an allowable education tax credit for a taxable year (and may result in an increase in tax liability for the year of the refund); (G) State that the taxpayer should refer to relevant IRS forms and publications, such as Publication 970, “Tax Benefits for Education,” and should not refer to the institution or the insurer, for explanations relating to the eligibility requirements for, and calculation of, any allowable education tax credit; and (H) Include the name, address, and phone number of the information contact of the eligible educational institution or insurer that filed the Form 1098-T. (2) Time and manner for furnishing statement —(i) In general. Except as provided in paragraphs (c)(2)(ii) of this section, an institution or insurer must furnish the statement described in paragraph (c)(1) of this section to each individual for whom it is required to file a return, on or before January 31 of the year following the calendar year in which payments were received for qualified tuition and related expenses, or reimbursements, refunds or reductions of such amounts were made. If mailed, the statement must be sent to the individual's permanent address or the individual's temporary address if the institution or insurer does not know the individual's permanent address. If furnished electronically, the statement must be furnished in accordance with applicable regulations. * * * * * (e) Definitions. The following definitions apply with respect to this section: (1) Administered and processed —(i) In general. A scholarship or grant is “administered and processed” by an eligible educational institution if the institution receives payment of an amount (whether by cash, check, or other means of payment) that the institution knows or reasonably should know, is a scholarship or grant, regardless of whether the institution is named payee or co-payee of such amount and regardless of whether, in the case of a payment other than in cash, the student endorses the check or other means of payment for the benefit of the institution. For instance, Pell Grants, described in the Higher Education Act of 1965 (20 U.S.C. 1070), as amended, are administered and processed by an institution in all cases. (ii) Examples. The following examples illustrate the definition in this paragraph (e)(1): Example 1. University M received a Pell Grant on behalf of Student B, a student enrolled in a degree program at University M. University M provides all required notifications to and obtains all the necessary paperwork from Student B and applies the Pell Grant to Student B's account. Because University M received the Pell Grant and University M knows or should know that the Pell Grant is a scholarship or grant, under paragraph (e)(1)(i) of this section, the Pell Grant is administered and processed by University M. Example 2. University N receives a check from Organization Y made out to Student C. University N is not named as a payee on the check. The cover letter accompanying the check provides University N with sufficient information to reasonably know that the check represents payment of a scholarship that may be used to pay Student C's qualified tuition and related expenses. Under paragraph (e)(1)(i) of this section, the scholarship from Organization Y is administered and processed by University N. This is the case even though University N is not named on the check as a payee and regardless of whether Student C endorses the check over to University N. (2) Cost of attendance. The term “cost of attendance” has the same meaning as section 472 of the Higher Education Act of 1965, 20 U.S.C. 1087ll. (f) * * * (3) * * * (ii) Acting in a responsible manner. An institution or insurer must request the TIN of each individual for whom it is required to file a return if it does not already have a record of the individual's correct TIN. If the institution or insurer does not have a record of the individual's correct TIN, then it must solicit the TIN in the manner described in paragraph (f)(3)(iii) of this section on or before December 31 of each year during which it receives payments of qualified tuition and related expenses or makes reimbursements, refunds, or reductions of such amounts with respect to the individual. If an individual refuses to provide his or her TIN upon request, the institution or insurer must file the return and furnish the statement required by this section without the individual's TIN, but with all other required information. The specific solicitation requirements of paragraph (f)(3)(iii) of this section apply in lieu of the solicitation requirements of § 301.6724-1(e) and (f) of this chapter for the purpose of determining whether an institution or insurer acted in a responsible manner in attempting to obtain a correct TIN. An institution or insurer that complies with the requirements of this paragraph (f)(3) will be considered to have acted in a responsible manner within the meaning of § 301.6724-1(d) of this chapter with respect to any failure to include the correct TIN of an individual on a return or statement required by section 6050S and this section. * * * * * (4) No penalty imposed on eligible educational institutions that certify compliance with paragraph (f)(3) of this section at the time of filing the return. In the case of returns required to be filed and statements required to be furnished after December 31, 2015, the IRS will not impose a penalty against an eligible educational institution under section 6721 or 6722 for failure to include the individual's correct TIN on the return or statement if the institution makes a true and accurate certification to the IRS under penalties of perjury (in the form and manner prescribed by the Secretary in publications, forms and instructions, or other published guidance) at the time of filing of the return that the institution complied with the requirements in paragraphs (f)(3)(ii) and (iii) of this section. Nothing in this paragraph (f)(4) prevents the IRS from imposing a penalty under section 6721or 6722 if after the IRS receives the certification described in this paragraph (f)(4) the IRS determines that the requirements of paragraph (f)(3) of this section are not satisfied or the failure is unrelated to an incorrect or missing TIN for the individual for whom the institution is required to file a return or statement. * * * * * (g) Applicability date. The rules in this section apply to information returns required to be filed, and statements required to be furnished, after December 31, 2003, except that paragraphs (a)(2) (b)(1), (b)(2)(i), (b)(2)(ii)(D), (E), and (G) through (K), (b)(2)(iv) through (vii), (b)(4)(i) and (ii), (c)(1)(iii)(B) through (H), (e), and (f)(4) apply to information returns required to be filed, and statements required to be furnished, after the date of publication of the Treasury decision adopting these rules as final regulations in the Federal Register . For information returns required to be filed, and statements required to be furnished, on or before the date of publication of the Treasury decision adopting these rules as final regulations in the Federal Register , § 1.6050S-1 (as contained in 26 CFR part 1, revised April 2014) applies.