[Code of Federal Regulations]
[Title 26, Volume 13]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR]

[Page 392-395]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.6050S-2  Information reporting for payments and reimbursements 
or refunds of qualified tuition and related expenses.

    (a) Electronic furnishing of statements--(1) In general. A person 
required

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by section 6050S(d) to furnish a written statement regarding payments 
and reimbursements or refunds of qualified tuition and related expenses 
(furnisher) to the individual to whom it is required to be furnished 
(recipient) may furnish the statement in an electronic format in lieu of 
a paper format. A furnisher who meets the requirements of paragraphs 
(a)(2) through (6) of this section is treated as furnishing the required 
statement.
    (2) Consent--(i) In general. The recipient must have affirmatively 
consented to receive the statement in an electronic format. The consent 
may be made electronically in any manner that reasonably demonstrates 
that the recipient can access the statement in the electronic format in 
which it will be furnished to the recipient. Alternatively, the consent 
may be made in a paper document if it is confirmed electronically.
    (ii) Withdrawal of consent. The consent requirement of this 
paragraph (a)(2) is not satisfied if the recipient withdraws the consent 
and the withdrawal takes effect before the statement is furnished. The 
furnisher may provide that a withdrawal of consent takes effect either 
on the date it is received by the furnisher or on a subsequent date. The 
furnisher may also provide that a request for a paper statement will be 
treated as a withdrawal of consent.
    (iii) Change in hardware or software requirements. If a change in 
the hardware or software required to access the statement creates a 
material risk that the recipient will not be able to access the 
statement, the furnisher must, prior to changing the hardware or 
software, provide the recipient with a notice. The notice must describe 
the revised hardware and software required to access the statement and 
inform the recipient that a new consent to receive the statement in the 
revised electronic format must be provided to the furnisher. After 
implementing the revised hardware and software, the furnisher must 
obtain from the recipient, in the manner described in paragraph 
(a)(2)(i) of this section, a new consent or confirmation of consent to 
receive the statement electronically.
    (iv) Examples. The following examples illustrate the rules of this 
paragraph (a)(2):

    Example 1. Furnisher F sends Recipient R a letter stating that R may 
consent to receive statements required by section 6050S(d) 
electronically on a Web site instead of in a paper format. The letter 
contains instructions explaining how to consent to receive the 
statements electronically by accessing the Web site, downloading the 
consent document, completing the consent document and e-mailing the 
completed consent back to F. The consent document posted on the Web site 
uses the same electronic format that F will use for the electronically 
furnished statements. R reads the instructions and submits the consent 
in the manner provided in the instructions. R has consented to receive 
the statements electronically in the manner described in paragraph 
(a)(2)(i) of this section.
    Example 2. Furnisher F sends Recipient R an e-mail stating that R 
may consent to receive statements required by section 6050S(d) 
electronically instead of in a paper format. The e-mail contains an 
attachment instructing R how to consent to receive the statements 
electronically. The e-mail attachment uses the same electronic format 
that F will use for the electronically furnished statements. R opens the 
attachment, reads the instructions, and submits the consent in the 
manner provided in the instructions. R has consented to receive the 
statements electronically in the manner described in paragraph (a)(2)(i) 
of this section.
    Example 3. Furnisher F posts a notice on its Web site stating that 
Recipient R may receive statements required by section 6050S(d) 
electronically instead of in a paper format. The Web site contains 
instructions on how R may access a secure Web page and consent to 
receive the statements electronically. By accessing the secure Web page 
and giving consent, R has consented to receive the statements 
electronically in the manner described in paragraph (a)(2)(i) of this 
section.

    (3) Required disclosures--(i) In general. Prior to, or at the time 
of, a recipient's consent, the furnisher must provide to the recipient a 
clear and conspicuous disclosure statement containing each of the 
disclosures described in paragraphs (a)(3)(ii) through (viii) of this 
section.
    (ii) Paper statement. The recipient must be informed that the 
statement will be furnished on paper if the recipient does not consent 
to receive it electronically.
    (iii) Scope and duration of consent. The recipient must be informed 
of the scope

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and duration of the consent. For example, the recipient must be informed 
whether the consent applies to statements furnished every year after the 
consent is given until it is withdrawn in the manner described in 
paragraph (a)(3)(v)(A) of this section or only to the statement required 
to be furnished on or before the January 31 immediately following the 
date on which the consent is given.
    (iv) Post-consent request for a paper statement. The recipient must 
be informed of any procedure for obtaining a paper copy of the 
recipient's statement after giving the consent described in paragraph 
(a)(2)(i) of this section and whether a request for a paper statement 
will be treated as a withdrawal of consent.
    (v) Withdrawal of consent. The recipient must be informed that--
    (A) The recipient may withdraw a consent by writing (electronically 
or on paper) to the person or department whose name, mailing address, 
telephone number, and e-mail address is provided in the disclosure 
statement;
    (B) The furnisher will confirm the withdrawal and the date on which 
it takes effect in writing (either electronically or on paper); and
    (C) A withdrawal of consent does not apply to a statement that was 
furnished electronically in the manner described in this paragraph (a) 
before the date on which the withdrawal of consent takes effect.
    (vi) Notice of termination. The recipient must be informed of the 
conditions under which a furnisher will cease furnishing statements 
electronically to the recipient.
    (vii) Updating information. The recipient must be informed of the 
procedures for updating the information needed by the furnisher to 
contact the recipient. The furnisher must inform the recipient of any 
change in the furnisher's contact information.
    (viii) Hardware and software requirements. The recipient must be 
provided with a description of the hardware and software required to 
access, print, and retain the statement, and the date when the statement 
will no longer be available on the Web site.
    (4) Format. The electronic version of the statement must contain all 
required information and comply with applicable revenue procedures 
relating to substitute statements to recipients.
    (5) Notice--(i) In general. If the statement is furnished on a Web 
site, the furnisher must notify the recipient that the statement is 
posted on a Web site. The notice may be delivered by mail, electronic 
mail, or in person. The notice must provide instructions on how to 
access and print the statement. The notice must include the following 
statement in capital letters, ``IMPORTANT TAX RETURN DOCUMENT 
AVAILABLE.'' If the notice is provided by electronic mail, the foregoing 
statement must be on the subject line of the electronic mail.
    (ii) Undeliverable electronic address. If an electronic notice 
described in paragraph (a)(5)(i) of this section is returned as 
undeliverable, and the correct electronic address cannot be obtained 
from the furnisher's records or from the recipient, then the furnisher 
must furnish the notice by mail or in person within 30 days after the 
electronic notice is returned.
    (iii) Corrected statements. If the furnisher has corrected a 
recipient's statement that was furnished electronically, the furnisher 
must furnish the corrected statement to the recipient electronically. If 
the recipient's statement was furnished through a Web site posting and 
the furnisher has corrected the statement, the furnisher must notify the 
recipient that it has posted the corrected statement on the Web site 
within 30 days of such posting in the manner described in paragraph 
(a)(5)(i) of this section. The corrected statement or the notice must be 
furnished by mail or in person if--
    (A) An electronic notice of the Web site posting of an original 
statement was returned as undeliverable; and
    (B) The recipient has not provided a new e-mail address.
    (6) Access period. Statements furnished on a Web site must be 
retained on the Web site through October 15 of the year following the 
calendar year to which the statements relate (or the first business day 
after such October 15, if October 15 falls on a Saturday, Sunday, or 
legal holiday). The furnisher must maintain access to corrected 
statements that are posted on

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the Web site through October 15 of the year following the calendar year 
to which the statements relate (or the first business day after such 
October 15, if October 15 falls on a Saturday, Sunday, or legal holiday) 
or the date 90 days after the corrected statements are posted, whichever 
is later.
    (b) Paper statements after withdrawal of consent. If a recipient 
withdraws consent to receive a statement electronically and the 
withdrawal takes effect before the statement is furnished 
electronically, a paper statement must be furnished. A paper statement 
furnished after the statement due date under this paragraph (b) will be 
considered timely if furnished within 30 days after the date the 
withdrawal of consent is received by the furnisher.
    (c) Effective date. This section applies to statements required to 
be furnished after February 13, 2004. Paragraph (a)(6) of this section 
also applies to statements required to be furnished after December 31, 
2004.

[T.D. 9114, 69 FR 7570, Feb. 18, 2004]