Monday, January 30, 2017
Treasury Extends Relief to (Law) Students for "Defense to Repayment” or “Closed School” discharge process
Revenue Procedure 2017-24 provides relief from discharge of indebtedness income for taxpayers whose Federal student loans, taken out to attend a school owned by the American Career Institutes, Inc., are discharged by the Department of Education under the "Closed School" or "Defense to Repayment" discharge process. The revenue procedure also provides that the IRS will not assert that the entity discharging these loans has an information reporting requirement. This revenue procedure modifies Rev. Proc. 2015-57, 2015-51 I.R.B. 863, to provide similar reporting relief for creditors under that revenue procedure.
Revenue Procedure 2017-24 will be IRB 2017-07, dated 2/13/17.