The U.S. Department of Treasury - Internal Revenue Service (IRS) recently issued IRS Notice 98-46 which extends the 1998 Hope Scholarship and Lifelong Learning credit reporting requirements to the 1999 tax year. Section 6050S of the Internal Revenue Code requires the filing of information returns to assist taxpayers and the IRS in determining the Hope Scholarship and Lifetime Learning credit that taxpayers may claim. The requirements of section 6050S are described in IRS Notice 97-73.

As a result of amendments to Section 6050S, made by the Internal Revenue Service Restructuring and Reform Act of 1998, some reporting requirements have been clarified or changed.

 Section 6050S now requires institutions to report the aggregate amount of payments made with respect to each student for qualified tuition and related expenses without any amounts being subtracted for qualified scholarships or other tax-free educational assistance received with to respect to the student.

Section 6050S(b)(2)(C) specifically requires that the amount of any grant received by the student for payment of costs of attendance and processed by the institution making the information return be reported as a separate item.

Section 6050S(b)(2)(C) was clarified to specify that an institution must report only the aggregate amount of reimbursements and refunds of qualified tuition and related expenses paid to a student by the institution (and not by any other party).

Section 6050S(a) was amended to clarify that only eligible educational institutions and persons engaged in a trade or business of making payments to individuals under insurance arrangements are required to report information under section 6050S.