SECTION 8. DRAFTING

INFORMATION

The principal author of this notice is Sean Barnett of the Exempt Organizations, Tax Exempt and Government Entities Division. For further information regarding this notice, contact Mr. Barnett at (202) 283–8912 (not a toll-free call).

Waiver for Reasonable Cause for Failure to Report Loan Origination Fees and Capitalized Interest on Qualified Education Loans

Notice 2006–5

PURPOSE

This notice provides information for payees/filers who receive payments of interest on qualified education loans to request a waiver of penalties for failure to report payments of loan origination fees and capitalized interest received in 2005 for qualified education loans made on or after September 1, 2004.

BACKGROUND

Section 6050S requires certain payees who receive payments of interest on one or more qualified education loans, as defined in section 221(d)(1), to file information returns with the Internal Revenue Service (Service) and to furnish information statements to borrowers. In the case of interest payments received or collected by a person on behalf of a payee, the information reporting requirements are generally imposed on that other person (filer) and not the payee. See section 1.6050S–3(e)(3)(i) of the Income Tax Regulations. For qual

under § 170(f)(12)(D), O must report the information contained in the acknowledgment on Copy A of Form 1098–C and file the report with the Service by February 28, 2008. But if O files electronically, the report is due on March 31, 2008.

The filing of Form 1098–C does not relieve the donee organization of its obligation under § 6050L to report information about dispositions of charitable deduction property on Form 8282, Donee Informa- tion Return .