Good news for those with student loans forgiveness

Issue Number:    RP-2018-39

Inside This Issue

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Revenue Procedure 2018-39 provides relief to taxpayers who took out private student loans to finance attendance at a school owned by Corinthian College, Inc. (CCI) or American Career Institutes, Inc. (ACI).  It amplifies Rev. Proc. 2015-57 and Rev. Proc. 2017-24, which had provided relief to those students who had taken out Federal student loans to finance attendance at CCI and ACI, respectively.  Under Rev. Proc. 2018-39, a taxpayer will be able to exclude from gross income the discharged amount of a private student loan taken out to finance attendance at ACI or CCI.  Taxpayers also will not be required to increase taxes owed in the year of discharge for prior claimed credits or deductions attributable to payments made on these private student loans.  Finally, the IRS will not require a creditor to file returns and furnish payee statements for the discharged indebtedness.  

Revenue Procedure 2018-39 will be in IRB 2018-34, dated 8/20/2018.