# Announcement 2016-17: Part IV – Items of General Interest Limited Penalty Relief for Filers of Form 1098-T, Tuition Statement > Federal · IRS announcements · In force URL: https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_17 ## Section - **Citation:** Announcement 2016-17 - **Heading:** Part IV – Items of General Interest Limited Penalty Relief for Filers of Form 1098-T, Tuition Statement - **Jurisdiction:** Federal - **Kind:** IRS announcements - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Internal Revenue Bulletin / IRB 2016 / Announcement / Announcement 2016-17 ## Text 1 Part IV – Items of General Interest Limited Penalty Relief for Filers of Form 1098-T, Tuition Statement Announcement 2016-17 This announcement provides notice that the IRS will not impose penalties under section 6721 or 6722 on eligible educational institutions with respect to Forms 1098-T, Tuition Statement, required to be filed and furnished for the 2016 calendar year under section 6050S if the institution reports the aggregate amount billed for qualified tuition and related expenses on Form 1098-T instead of the aggregate amount of payments received as required by section 212 of the Protecting Americans from Tax Hikes Act of 2015 (Public Law 114-113 (129 Stat. 2242 (2015))(PATH). The penalty relief in this announcement is limited to 2016 Forms 1098-T required to be filed by eligible educational institutions by February 28, 2017 (or March 31, 2017, if filed electronically), and furnished to recipients by January 31, 2017. This announcement does not provide penalty relief for any other failure that would cause a filer to be subject to penalties under section 6721 or 6722, or any other penalty under any provision of the Code. Sections 6050S(a)(1) and 6050S(d) generally require eligible educational institutions to file information returns with the IRS and to furnish written statements to 2 individuals relating to qualified tuition and related expenses paid by, or on behalf of, students. Section 6050S(b)(2) specifies the contents of the information return and, effective for expenses paid after December 31, 2015, requires eligible educational institutions to report the aggregate amount of payments received for qualified tuition and related expenses during the calendar year from, or on behalf of, a student. Previously, section 6050S(b)(2) allowed eligible educational institutions to report either the aggregate amount of payments received for qualified tuition and related expenses or the aggregate amount billed for such tuition and expenses ions to report the aggregate amount of payments received for qualified tuition and related expenses during the calendar year from, or on behalf of, a student. Previously, section 6050S(b)(2) allowed eligible educational institutions to report either the aggregate amount of payments received for qualified tuition and related expenses or the aggregate amount billed for such tuition and expenses. Section 1.6050S-1(b)(5) provides that information returns required under section 6050S must be filed by February 28 (or March 31 if filed electronically) of the year following the calendar year to which such returns relate. Section 6050S(d) provides that written statements required under that section must be furnished to recipients by January 31 of the year following the calendar year for which such statements are furnished. Section 212 of PATH amended section 6050S(b)(2) and eliminated the option for eligible educational institutions to report aggregate qualified tuition and related expenses billed for the calendar year. This amendment is effective for qualified tuition and related expenses paid after December 31, 2015, for education furnished in academic periods beginning after such date. Section 6721 imposes a penalty for failure to file correct or timely information returns with the IRS. Section 6722 imposes a penalty for failure to furnish a correct or timely written statement to the recipient. These penalties do not apply if it is shown under section 6724 that the failure is due to reasonable cause and not due to willful neglect. 3 Form 1098-T is the information return for purposes of satisfying the reporting obligations described in sections 6050S(a)(1) and 6050S(d). Prior to enactment of section 212 of PATH, eligible educational institutions reported qualified tuition and related expenses on Form 1098-T either as payments received for the calendar year in Box 1 of the form or as amounts billed during a calendar year in Box 2 of the form information return for purposes of satisfying the reporting obligations described in sections 6050S(a)(1) and 6050S(d). Prior to enactment of section 212 of PATH, eligible educational institutions reported qualified tuition and related expenses on Form 1098-T either as payments received for the calendar year in Box 1 of the form or as amounts billed during a calendar year in Box 2 of the form. Following the enactment of PATH, numerous eligible educational institutions informed the IRS that implementation of the law change will require computer software reprogramming and other changes that cannot be implemented in time to meet the applicable filing and furnishing due dates for Form 1098-T for calendar year 2016. In light of this, the IRS will not impose penalties under section 6721 or 6722 with respect to 2016 Forms 1098-T solely because the eligible educational institution reports the aggregate amount billed for qualified tuition and related expenses for the 2016 calendar year. Thus, eligible educational institutions will continue to have the option of reporting either the amount of payments of qualified tuition and related expenses received or the amount of qualified tuition and related expenses billed for the 2016 calendar year without being subject to penalties. Institutions should refer to the instructions for the 2016 Form 1098-T for further guidance for reporting of these amounts. This penalty relief does not apply to any other failure subject to a penalty under section 6721 or 6722. The principal author of this announcement is Gerald Semasek of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this announcement, contact Gerald Semasek at (202) 317-6845 (not a toll- free call). ## Nearby sections - [Announcement 2016-2 Federal Tax Treatment of Identity Protection Services](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_2.md) - [Announcement 2016-3 Limited Penalty Relief for Filers of Form 1098-T, Tuition Statement, Under Section 6724(f)](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_3.md) - [Announcement 2016-12 provides guidance and instructions on filing APA requests as well as guidance and information on the administration of APAs](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_12.md) - [Announcement 2016-14 December 2015 Revision of Form 3115](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_14.md) - [Announcement 2016-16 Withdrawal of Proposed Nondiscrimination Rules Applicable to Certain Qualified Retirement Plan Benefit Formulas](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_16.md) - [Announcement 2016-17 Part IV – Items of General Interest Limited Penalty Relief for Filers of Form 1098-T, Tuition Statement](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_17.md) - [Announcement 2016-25 Tax Treatment of Payments Made on Behalf of or Reimbursements Received by Residents Affected by the Southern California Gas Company Natural Gas Leak](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_25.md) - [Announcement 2016-27 Part IV—Items of General Interest Update on Jurisdictions Treated as If They Have an IGA in Effect](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_27.md) - [Announcement 2016-30 Relief for Victims of Louisiana Storms](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_30.md) - [Announcement 2016-32 Facilitating Compliance with Qualified Plan Document Requirements](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_32.md) - [Announcement 2016-39 Relief for Victims of Hurricane Matthew](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_39.md) - [Announcement 2016-42 Part IV – Items of General Interest Limited Penalty Relief for Filers of Form 1098-T, Tuition Statement](https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_42.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/IRS_ANN_2016_17. 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