Revenue Procedure 2015-57: Corinthian Colleges Student Loans
Internal Revenue Service (IRS) sent this bulletin at 12/03/2015 01:25 PM EST
 |
|||
|
|||
News EssentialsIRS Resources |
Issue Number: Revenue Procedure 2015-57Inside This IssueRevenue Procedure 2015-57 applies to a taxpayer who took out Federal student loans to finance attendance at a school owned by Corinthian Colleges, Inc. that are discharged under the Department of Education’s (ED) Defense to Repayment discharge process or Closed School discharge process. Rev. Proc. 2015-57 provides that the Internal Revenue Service (IRS) will not assert that a taxpayer within the scope of this revenue procedure whose Federal student loans are discharged under ED’s Defense to Repayment discharge process must recognize gross income as a result of this discharge process. This revenue procedure identifies the statutory provisions under which taxpayers whose Federal student loans are discharged under ED’s Closed School discharge process may exclude the discharged amount from gross income. In addition, the IRS will not assert that these taxpayers must increase their taxes owed in the year of discharge, or in a prior taxable year, as a result of either discharge process if in a prior year he or she received an education credit under section 25A attributable to payments made with proceeds of the discharged loan. The IRS also will not assert that these taxpayers must increase their income in the year of the discharge if he or she took a deduction under section 221 in a prior year attributable to interest paid on a discharged loan or a deduction under section 222 in a prior taxable year attributable to payments of qualified tuition and related expenses made with proceeds of the discharged loan. Revenue Procedure 2015-57 will be in IRB 2015-51, dated December 7, 2015. Thank you for subscribing to IRS GuideWire, an IRS e-mail service. If you are a Tax Professional and have a specific concern about your tax situation, call the IRS Practitioner Priority Service 1-866-860-4259. This message was distributed automatically from the IRS GuideWire mailing list. Please Do Not Reply To This Message. |