Summary: Safeguard Procedures Report for the Federal Perkins Loan Skiptracing Program
SUBJECT: Safeguard Procedures Report for the Federal Perkins Loan Skiptracing Program
PUBLICATION REFERENCE: The Campus-Based Programs portion of the 1999-2000 Federal Student Financial Aid Handbook; Federal Perkins Loan Program Regulations, 34 CFR, Part 674; and IRS Publication 1075 (Tax Information Security Guidelines for Federal, State, and Local Agencies), revised March 1999.
This letter explains the Internal Revenue Service (IRS)/Department of Education (ED) Skiptracing Program.
What is the IRS/ED Skiptracing Program?
The IRS/ED Skiptracing Program helps locate borrowers who are or will be going into default on their Federal Perkins Loans.
How does it work?
ED utilizes the IRS Skiptracing data to provide taxpayer addresses of defaulted borrowers to institutions participating in the Federal Perkins Loan Program. The data are extracted monthly from the IRS Individual Master File at its National Computer Center. The data on the IRS file are updated weekly as new information is received about a taxpayer. The major update of all IRS files based on the latest annual tax return is usually accomplished by July of each year.
As a subscriber to this service, you would have the option of submitting requests in the form of typed lists/computer printouts or magnetic tapes (see Enclosure 3). Requests that we receive on listing/printouts will be processed and the results returned in the form of computer listings. Requests that we receive in the form of magnetic tape should be in the format as described in Enclosure 1. ED and the IRS use the first four (4) characters of the last name and the complete SSN for the Skiptracing match. These must be provided in requests for IRS/ED Skiptracing services.
What are the requirements for me to participate in this program?
· be a participant in the Federal Perkins Loan Program and
· Have a Campus-Based serial number (an identification number assigned by ED).
Do I have to use this service?
You are no longer required to use the IRS/ED Skiptracing Service for carrying out the due diligence provisions of the Federal Perkins Loan Program. Nevertheless, ED strongly encourages institutions to continue using this service. This service is one of the most powerful tools available to institutions for locating defaulted borrowers and is provided to institutions free of charge.
What would I be required to do to participate?
In order to participate in the program, you would be required to submit a Safeguard Procedures Report (even if you have one on file with ED) for the period July 1, 1999 through June 30, 2000. In addition, you must provide ED with an annual Safeguard Activity Report (an update to the Safeguard Procedures Report) by September 30th of each year thereafter. Each report is described below:
Safeguard Procedures Report
The Safeguard Procedures Report is a complete description of how you process the federal tax return information (FTI) and the safeguards you established to prevent unauthorized disclosure or use of the information. A detailed description of the report is contained in Section 7.0 of IRS Publication 1075 entitled Reporting Requirements. Enclosure 4 to this document provides additional preparation instructions.
NOTE: Each institution is required to submit a new Safeguard Procedures Report NLT September 30, 2000. The enclosures apply to all subscribers.
Safeguard Activity Report
In order to maintain eligibility in the Skiptracing Program, you must submit an annual update to the Safeguard Procedures Report called a Safeguard Activity Report. This report describes any changes that have occurred since you last reported and anything that could be demonstrative of safeguard efforts and/or awareness. We will notify you of the deadlines for submitting a Safeguard Activity Report.
Can a servicer/contractor prepare these reports or the requests for information for me?
You may have a servicer/contractor prepare these reports, but they must be prepared according to the standards in Enclosure 4 and be signed by an authorized official of the institution. The servicer/contractor must also file reports for their own facilities in accordance with these requirements.
We do not process requests for FTI from entities other than the principal subscriber (you). It is not acceptable for loan servicing centers to submit skiptracing requests on behalf of institutions. The principal subscriber must perform the proper certification of safeguard reports and request transmittals. Under appropriate safeguards, FTI may be furnished to servicers, but only the principal subscribers involved may request it.
What information will I receive if I participate in this program?
You will receive a Federal Perkins Loan Skiptrace IRS Address Report (Enclosure 2). The IRS data will be returned to ED by the first Friday of the month. IRS tapes will be processed and the address data sent to the requestors before the second week of the month. The total processing time is approximately two weeks from the time the input is received until the results are returned.
If a social security number (SSN) and name match is completed, the latest street address, post office box number, or other address, city state, and zip code furnished to IRS by the taxpayer will be provided. The zip code is the five-digit code assigned by the Postal Service. The two zeroes (00) in the last positions indicate that the area code (the first three digits) could be obtained, but the zone could not. Zeroes in all five positions indicate that the city or town could not be located in the Zip Code File maintained by IRS.
What is the deadline for my submissions?
The Safeguard Activity Report is due no later than September 30th of each year. We will send reporting requirements to each institution that participates in the Perkins Loan Program approximately sixty (60) days prior to that date each year. Institutions that fail to submit this annual report will be removed from the program for the coming year. Reentry into the program at a later date will require submission of the entire Safeguard Procedures Report again.
Where do I send my report?
You should mail your reports to the following address:
FFELP/Federal Perkins IRS Skiptracing Service
P. O. Box 4132
Greenville, TX 75403-4132
How should I send the reports?
You should mail the reports via the U. S. Postal Service only (commercial carriers such as Federal Express and United Parcel Service cannot deliver to the above address).
Who should I call if I have a question about this letter?
If you have any questions regarding these procedures, please telephone Lloyd Nicholson at (202) 708-9201 or e-mail him at email@example.com. You may also contact Cynthia Mills at (202) 708-9768 or e-mail her at firstname.lastname@example.org.
G. Kay Jacks
Enclosure 1 Input/Output Layouts
Enclosure 2 Hard Copy Output Layout
Enclosure 3 Transmittal Letter
Enclosure 4 Supplemental Instructions for Safeguard Procedures Report
Enclosure 5 Fact Sheet for Protection of Federal Tax Return Information